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Table of Contents
Holiday Currency Gift Cards--A Narrative--Mark Anderson & Len Glazer
The Birth of Star Notes--Peter Huntoon and Lee Lofthus
Treasury Dept. Rectangles on 2nd Issue Fractional Currency--Rick Melamed
Uncoupled--Joe Boling & Fred Schwan
Zimbabwe's Plunge into Monetary Madness--Carlson Chambliss
An update on Unlisted Sterling, AL Notes--Bill Gunther
George McGovern's Promissory Note--Loren Gatch
No $5 S.C. I-A or J-A Block Mules--Jamie Yakes
Wow, What a Sheet--Robert GIll
Johnathan Bliss & The Greenville (AL) Insurance Co.--Bill Gunther.
Paper Money
Vol. LIII, No. 6, Whole No. 294 www.SPMC.org November/December2014
Official Journal of the Society of Paper Money Collectors
Happy
Holidays
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Paper Money * Nov/Dec 2014 * Whole No. 294
PAPER MONEY
Official Bimonthly Publication of
The Society of Paper Money Collectors, Inc.
Vol.. LIII, No. 6 Whole No. 294 Nov./Dec. 2014
ISSN 0031-1162
Benny Bolin, Editor
Holiday Currency Gift Cards-A Narrative
Mark Anderson & Len Glazer ............................ ... 387
The Paper Column--The Birth of Star Notes
Peter Huntoon & Lee Lofthus ............................ ... 400
Treasury Department Rectangles on 2nd Issue Fractional
Richard Melamed .............................................. ... 412
Uncoupled—Joe Boling & Fred Schwann.................... .... 417
Zimbabwe’s Plunge Into Monetary Madness
Carlson Chambliss ............................................ ... 422
An Update on Unlisted Sterling, AL Notes
Bill Gunther .......................................................... 430
George McGovern’s Promissory Note
Loren Gatch .......................................................... 432
Small Notes—No $5 S.C. I-A or J-A Block Mules
Jamie Yakes ......................................................... 436
Obsolete Corner—Wow, What a Sheet
Robert Gill……………………………………………………….438
Johnathan Bliss & The Greenville (AL) Insurance Co.
Bill Gunther ........................................................... 440
Chump Change—Loren Gatch ....................................... 452
President’s Column—Pierre Fricke ................................... 453
Membership Report—Frank Clark .................................... 454
Editor Sez—Benny Bolin .................................................. 455
Money Mart ........................................................................... 454
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Paper Money * Nov/Dec 2014 * Whole No. 294
386
Holiday Currency Gift Cards - A Narrative
by Len Glazer and Mark Anderson
The earliest known form of written holiday greeting was to hand write wishes on paper
and mail them out as an annual holiday letter. The custom of sending greetings by way of mass‐
produced Christmas cards did not arrive until 1843, when Sir Henry Cole, a British civil servant,
started wondering how the Post Office could be more meaningfully used by all classes of
people. He had a brainstorm, and hired a local artist, John Callcott Horsley, who created the
first commercial Christmas card [see fig. 1, below]. Estimates of how many were printed vary
from 1,000 to 2,000 examples, but only 7 examples are known to exist today.
Holiday season cards began appearing in the United States in the late 1840’s, but
because they were piecework efforts, they were costly to produce and relatively expensive.
However, they were prevalent enough that in the early 1870’s there appeared a series of
newspaper articles complaining that the large quantity of mailed Christmas cards was causing
slowed delivery of what they referred to as “legitimate correspondence.” And while in 1873,
apparently bowing to this pressure, the New York Times ran an ad in their personals column
apologizing for not sending Christmas cards that year, the popularity of the custom of mailing
holiday cards only increased. By 1900 virtually all families were sending and receiving large
quantities of enveloped cards.
Feeding the popularity was significantly improved affordability. In the late 1860’s,
Breslau‐born American printer Louis Prang, often referred to as “the father of the American
Christmas card,” started mass producing cards which featured flowers, plants and children.
While these visual were unrelated to holiday themes, the introduction of modern design and
printing techniques produced attractive and affordable cards, and they proved quite popular. In
1873, Prang produced holiday‐themed cards for export to England, where holiday cards were a
well‐established and popular tradition. In 1874, he began producing holiday themed cards for
the American market, and by 1881 L. Prang and Company was producing more than 5 million
Christmas cards each year. Over time, these cards began to feature many of the images we see
today, such as snow scenes, fir trees, glowing fire‐places and children enjoying toys. These
creations proved enormously popular, and increasingly elaborate die cut cards, along with
“pop‐up” and multilayered cards became the fashion in the 1880’s and 1890’s. In the early part
of the 20th century, enveloped Christmas cards went out of fashion and nearly disappeared.
Fig. 1 The first Christmas card.
Paper Money * Nov/Dec 2014 * Whole No. 294
387
This was due to the fact that by the early 20th century, die cut, fringed, ribboned, and
elaborately enveloped cards had given way to the newcomer on the scene, the holiday post
card. Some producers, such as the children’s illustrator Kate Greenaway, became famous for
their cards, as did Frances Brundage and Ellen Clapsaddle [figure 2, below].
While post cards proved extremely popular in their time, the enveloped Christmas card
began making its return around the time of the first World War, and by the 1920’s had virtually
replaced the Christmas post card. And, exactly when is lost to history, but somewhere between
1905 and 1915 someone had the idea of enclosing small gifts of money, generally to children,
with their Christmas cards.
Shortly after this idea started taking off, the commercial producers of holiday cards
began producing cards which were specifically designed and engineered to hold holiday gifts of
money, principally coins [Figure 4].
Figure 2. An example of the Holiday post card,
with art by Ellen Clapsaddle.
Figure 3: Although no manufacturer is indicated, this
holiday season card clearly dates to the 1880’s, and is by
far the earliest piece known to the authors. Of heavy
cardboard, with a cloth fringe, and inscribed simply “A
Happy New Year,” the card is frosted to give the snow
scene highly realistic reflectivity. The lower corner has a
purpose‐made envelope, which could have held a $2.50
or $5.00 gold piece. It is illustrated with a $5.00 Liberty.
Paper Money * Nov/Dec 2014 * Whole No. 294
388
Even in these earliest days of the concept, when cards designed to hold coins far
outnumbered currency cards, the implied monetary gifts were significant, as several cards
designed to hold twenty dollar gold pieces have survived [see Figures 5 & 6, below].
Figure 4. Coin card. Intriguing, sturdy card of
unknown origin, featuring a window sash
which rises to reveal a $2.50 gold piece.
Though the coin is dated 1900, the card
appears to be of 1920’s vintage. Almost
certainly manufactured in the other three
denominations of the time [$5, $10, and $20].
Figure 5. Style of this well‐made Dennison product
dates it to the mid 1920’s. Santa heads down
snow draped chimney carrying pack stuffed with
toys. The uppermost toy is a small dog, which,
when pulled upwards, rises to reveal a U.S.
twenty dollar gold piece.
Figure 6. No manufacturer is
indicated on this die cut 1920’s coin
gift card. Santa on cover holds
unwrapped toys and a holiday
wreath; cover opens to reveal a
1924 twenty dollar gold piece
centered in a holly wreath and toys.
The card is hand inscribed “To
Mother from Daddy, Xmas, 1924.”
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389
In the post WWI era, currency cards began to overtake coin cards as the popular norm,
and coin cards receded in popularity. And as is obvious, a few coin cards are displayed here, but
as the titles of this publication and this article suggest, paper money is our common interest
and that is what we will focus on.
However, the tradition of gifting coins continues to this day, although modern coin cards
hold almost exclusively a dollar’s worth of dimes, and are directed at children [see Figure 7,
below].
However, the heyday of the Christmas money card was in the 1920’s, and design efforts
were focused on intriguing ways in which large size currency could be displayed or mechanically
proffered. While literally hundreds of designs exist in the cards held by collectors today, for the
purposes of this article, we present some of the more intriguing and attractive designs of the
day. The charm in many of these cards is the way in which they open to reveal the included gift
of coin or currency … the challenge for the authors is to properly explain or present the fashion
in which they articulate as they open. Where useful, we have provided two illustrations of the
card in question – the “before” and the “after.” We ask the reader to please use her/his
imagination in visualizing the experience of opening the cards in person.
Figure 7. A more modern [World War II
or shortly thereafter] product,
manufactured by Whitman [likely
Racine, WI at the time] long associated
with numismatics. Cover, displaying
Santa striking a large bass drum, opens
to reveal ten marching Santas [Santa
Claus’s Rag Dime Band]. Each dime
represents a drum head.
Figure 8. From the late ‘teens, by unknown
manufacturer, but made in USA. Incredibly
charming card, specifically manufactured to
display the back of 1917 one dollar legal tender
[“sawhorse back”], which when properly placed
inside the die cut gives the appearance of a
decorative candle. Poem at left reads:
“A steel engraving is tucked
inside
To add to your collection
Or you can exchange it – if you
wish –
And make your own selection.”
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390
Figure 9. Late ‘teens, unknown manufacturer, a
Christmas bonus envelope from the Firestone Tire
and Rubber Company, designed and manufactured
to contain an example of the first Series of Federal
Reserve Bank Notes with portraits at left. This
particular envelope contains a circulated Cleveland
district ace. Envelope was closed using 1919 Red
Cross tuberculosis seals.
Figure 11. Circa 1920. Unknown manufacturer, but envelope
embossing indicates “Made for D. Brown and Company,” Coytesville,
NJ. Envelope flap printed “Roseville State Savings Bank, Chicago, ILL.”
Holly wreath encircles cutout for large “2” from reverse of the
contained $2 1917 Legal Tender [Fr. 59].
Figure 10. Post World War I to mid‐1920’s vintage. Of unknown
manufacture, but produced for the Atlantic National Bank of
Boston. Contains a $10 1902 red seal National Bank note,
matching the card’s issuer.
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391
Figure 12. A highly unusual 1920’s tri‐folded die cut card without any indication as to maker or
origin. In step 1, Santa first “unfolds” his coat and in Step 2, his vest, to reveal a gift of a 1914 $1
Federal Reserve Bank Note.
Figure 13. Circa 1925, maker unknown,
labeled “Made in Saxony.”
Originally purchased containing a Fr. 91.
Figure 14. From the mid 1920’s and manufactured by Rust Craft of
Boston, MA. Printed inside the card is a mock up bill, marked “Insert
bill here.” Card acquired empty; now contains a 1922 ten dollar gold
certificate [Fr. 1173].
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392
Figure 15. Mid‐1920s, manufacturer
unknown, this card was specifically
manufactured to hold a series 1907 or
1922 ten dollar gold certificate,
positioned so that it appears to be the
roaring fire in the illustrated hearth. The
illustrated example contains a Fr. 1173.
Figure 16. Circa 1925, maker unknown, the
horizontally formatted version of the previous
“fireplace card,” although no maker is indicated, the
card is marked “Made in U.S.A.,” This and the
preceding card are quite apparently from two
different manufacturers; which is the “knock‐off” is
far from clear. Also contains a Fr. 1173.
Figure 17. From the late 1920’s, manufactured by Gibson of Cincinnati [spelled “Cinti”],
containing a 1923 $1 Silver Certificate, Fr. 237
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393
Over time, innovative graphic designers took advantage of the act of opening the card
to create increasingly clever manners in which the money was held, displayed or presented.
While generally Santa did the “giving,” there were exceptions:
Figure 18. Late
‘teens to mid‐
1920s, unknown
maker, contains a
1914 $5 Federal
Reserve Note.
Figure 19. Early 1920’s,
maker unknown, wreath
acts as porthole framing
back vignette of “Landing
of the Pilgrims” on the
contained 1914 Federal
Reserve Note.
Figure 20. Mid‐teens to 1920’s
era product. Of no known
manufacture. This “pop‐up” card
was given to Earl and Kalilla. As
card opens, Santa’s arm lifts to
“hand” the recipient a $100 Blue
Seal Federal Reserve Note,
quarterfolded.
Figure 21. Mid‐1920’s, manufacturer
unknown, magic wallet style, only
example of this format seen by author,
with the “magically switching” ribbons,
contains Fr. 91.
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394
Figure 22. A “pop‐up” card of unknown
origin, given to Sara from Edith in
December, 1922. Santa’s message is “I
have something in my pocket for
_________.” When opened, Santa’s arm
springs forward and proffers a folded
large size note, in this case a Kansas City
$5 1914 Federal Reserve Note.
Most money cards are of unknown manufacture; those that are marked are dominated
by the Dennison Company, which survives to this day as part of the Avery Dennison
Corporation. Aaron Dennison began the company in 1844, originally as a jewelry company.
When he moved the company back to his hometown of Brunswick, Maine, his father Andrew,
along with his sisters began making paper boxes to hold the jewelry. Eventually the jewelry
aspect of their enterprise faded, but the group continued as makers of cardboard boxes. By
1878, the company had a large box making facility in Roxbury, Massachusetts and incorporated
as Dennison Manufacturing. Early in the 20th century they branched out into manufacturing
wrapping paper and holiday cards. Some unknown individual within their holiday card division
must have had a fondness for clever coin and currency gift cards, as fully half of the surviving
cards of that nature are marked Dennison.
Figure 23. From the late ‘teens, manufactured by
Dennison U.S.A. Santa’s coat swings open to reveal
note tucked in his vest pocket. Card acquired with a
ten dollar 1902 Blue Seal National Bank note
[Chicago].
Figure 24. Mid‐teens to 1920’s era
product. This Dennison card opens
to reveal a large size $1 Boston
Federal Reserve bank Note, folded
into eighths and tucked into
Santa’s bright green vest.
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395
Figure 25. Likely from the 1920’s. Dennison.
Spray of Holly on front opens to reveal “Merry
Christmas” in interior, and holding tab.
Figure 26. Circa mid‐1920’s. Dennison product. Santa holds “Merry Christmas”
envelope in right upraised hand. Red portions of Santa’s suit die cut and
removed to allow green details of Fr. 237 to show through. While purchased
with this note inside, the author is curious as to what Dennison’s design group
desired to achieve with this approach.
Figure 27. Hand dated December of
1925. Manufactured by Dennison.
Santa on cover surrounded by
poinsettias opens to reveal a small
cluster of blooms and a “ribbon”
inscribed Season’s Greetings. When
obtained the card contained a good
luck bill from the National Bank of
Happy Times; apparently the original
recipient [“Rena”] removed and used
the actual currency, leaving this
sample note in the card.
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396
As will not surprise, the card makers managed the transition to small size currency with
understandable alacrity. Adjusted product was not only available for the Christmas after the
introduction of the small size currency in July of 1929, but mock small size placeholders inserts
cut to the exact size of the new currency were included in the card. A typical specimen, green
on one side, orange on the reverse, provided any client with any doubts the comfort of knowing
they were installing their gift in the card properly. The tradition of gifting currency continues to
this day, albeit in more subdued fashion than the examples which follow:
Figure 28. Produced in 1928 or 1929, by unknown
manufacturer. When purchased, this card contained
the $2 1928 Legal Tender Fr. 1501 illustrated, and
below it the original small size placeholder labeled
“Replace with new size currency.”
Figure 29. Post‐1928, likely early 1930’s. Unknown
manufacturer. Intended for small size note. Santa holds toy
sack decorated with wreath from which emerges a 1928 $5
Legal Tender Note [Fr. 1525].
Figure 30. Early 1930’s. Dennison. Young girl in Santa apparel
makes deposit at Merry Christmas Bank, “holding” a small size
note quarterfolded under her left arm. Acquired empty, the
card now holds a 1928 $2 Legal Tender issue.
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397
Figure 31. Apparently of 1930’s era; manufactured by the P. F.
Volland Company of Joliet, Illinois. This charming, simple card
illustrates a young lady with a banknote tucked into an
upended umbrella with a duck handle. Featuring a 1935A $1
Silver Certificate.
Figure 32. From circa 1935. Product of the Dennison Company.
Santa labors under a mountain of wrapped gifts, one of which is a
cleverly camouflaged $2 1928 Legal Tender note folded small to
blend with packages.
Figure 33. A simple but charming late 1930’s die cut card of
unknown manufacture. It holds a 1934 $5 silver certificate, with
Lincoln’s portrait peering through a porthole.
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398
Interestingly, the brand name most commonly associated with Christmas cards, indeed
greeting and holiday cards of every kind, is Hallmark, which was begun in 1910 in Kansas City,
Missouri by Joyce Clyde [“J.C”] Hall and his brother Rollie as a postcard printing and
manufacturing company. Called at the time Hall Brothers, on January 11th 1915 a fire utterly
destroyed their office and inventory. They salvaged nothing but their office safe and set up
shop again under their new name …. Hallmark. The aforementioned decline in holiday postcard
popularity coincided with the fire, resulting in their decision to print and produce enveloped
greeting cards. Despite their domination of the greeting card business over the last 100 years, if
they produced any early money cards these are unknown to this collector and author.
This collector’s interest began nearly 50 years ago; in those days these cards were a rare
find in antique shops, flea markets and coin shows. A serious collector [read: ‘addict”] would be
lucky to add one or two cards to his/her collection per year. The appearance of eBay about 15
years ago totally changed the market, and although charming early cards are still hard to find,
acquisitions have picked up to the point where a small warehouse will soon be in order. As an
aside and unsurprisingly, the cards rarely show up with period currency in them. As may be
surmised from the above, one of the intriguing aspects of this collection is the process of
discovering the intended or “right” note for the cards that arrived in the collection empty.
With that, we say, “Merry Christmas to All and to All, Happy Collecting.”
Figure 34. Two similar examples of later product, circa
1940, both lacking any manufacture identification.
Currently contain a 1928 $2 Legal Tender note, and
1934 $5 Silver Certificate, respectively. The book titles,
as printed on the “spines,” are
“The Lives of the Presidents” and
“Famous Men.”
Figure 35. 1940s product.
Imprinted “Volland Joliet, U.S.A.”
Snowman on cover opens to
reveal [apparently] a melting
snowman holding a 1928B $5
Legal Tender Note.
Paper Money * Nov/Dec 2014 * Whole No. 294
399
The Birth of Star Notes
The Back Story
by Peter Huntoon and Lee Lofthus
Figure 1. The acquisition by the BEP of high speed Harris serial numbering, sealing, severing and collating
machines in 1910 forced creation of star notes because their use eliminated a bottleneck during the last
inspection that would have resulted if defectives had to be exchanged out with make-up replacement notes
printed on the spot. Photo courtesy of Heritage Auction Archives.
The Department of the Treasury transferred responsibility for sealing and separating type
notes from the Treasurer’s office to the Bureau of Engraving and Printing in 1910. On its face,
this transfer appeared to be a rather benign adjustment in how to get a routine job done more
efficiently.
Quite to the contrary, what occurred was an epic bureaucratic turf battle between two
organizations within the Treasury - the Treasurer's office and the Bureau of Engraving and
Printing - over who would end up with final responsibility for putting the finishing touches on
U. S. currency in order to monetize it. The change was prodded on by Congressional committees
bent on streamlining the printing process in order to save the taxpayers a lot of money.
The outcome involved the transfer of a very large workforce with a substantial operating
budget. The Treasurer’s office was diminished, the BEP fattened. This represented a transfer of
power and influence in every sense of the word as defined in Washington, DC, culture - a culture
that lives and breathes hierarchy and influence!
Oddly, star notes owe their origin to this event.
Power in Washington, DC
There are four types of powerful people in Washington, DC. The top dogs are the elected
officials - those select few who garner enough votes to be installed at the very levers of power. Of
course, there is a hierarchy among the elected officials based on the relative prestige of the offices
they hold that obviously rank downward from President to Senator to Congressmen. Within a
given strata, power flows to those with the longest tenure - a measure of their tenacity to convince
their voters that they should be there.
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Next comes the most senior appointed executive branch officials. These people accrue
power by virtue of being handpicked by a president to carry out his mandate. The big guns are
cabinet officials who manage sprawling agencies with huge budgets. Their relative prestige is
measured in face-time; that is, how much influence they wield with the President based on the time
he personally spends with them.
A terrific example of a cabinet member who carried enormous clout was Secretary of the
Treasury Henry Morgenthau Jr., who not only presided over the largest Treasury up to that point in
history, but also was a close personal friend, confidant and policy maker in Franklin D.
Roosevelt’s inner circle.
Then there are lower ranking non-cabinet officials such as the U. S. Treasurer, Comptroller
of the Currency and Director of the Bureau of Engraving and Printing. These appointees derive
their power and influence based on the importance of their responsibilities, size of the budgets they
control, number of employees they manage, their tenure in office, and their access to their
overlords.
A prime example was BEP Director Alvin W. Hall, a Presidential appointee who served
from 1924 to 1954. By 1954 Hall was the longest serving director in BEP history and the bureau
was huge, with a large budget and an untarnished reputation. Mr. Hall did not seek the limelight,
but you can be certain that toward the end of his career people listened when he spoke.
Finally, when we look at DC hierarchy, we have to take seriously key career agency
personnel. They are Civil Service employees whose power usually flows down from the people
under whom they serve, the responsibilities they hold, the size of the budgets they control, their
longevity in office and their ability to get things done for their superiors. Some of these people
are dispensers of Federal largess, something that causes everyone both inside and outside the
government who interacts with them to be particular deferential towards them.
In 1910, the hierarchy within the Treasury was firmly established and can be measured by
the salaries for the various positions. The Secretary of the Treasury made $12,000 per year, the
Treasurer $8,000, Comptroller of the Currency $5,000, Director of the Bureau of Engraving and
Printing $5,000, Director of the Mint $4,500, Register of the Treasury $4,000 and Superintendent
of the National Bank Redemption Agency $3,500 (MacVeagh, 1909).
Treasurer’s Office and the BEP
So what does a discussion of power and influence have to do with the Treasurer of the
United States and the Director of the Bureau of Engraving and Printing? Both are Presidential
appointees.
The function of the BEP simply is to serve as the printing plant for the Department of the
Treasury and to accept contract printing work from other Federal agencies. Clearly, within the
hierarchy of Washington, the director takes orders and carries them out. The ideal director is one
who gets the job done effectively within a mostly congressionally mandated budget and is
expected to do so with an absolute minimum of visibility. Theirs is not to wield influence or
make policy outside of their own domain. Their job is not supposed to be controversial.
The U. S. Treasurer has an imposing title. The Treasurer is housed in the U. S. Treasury
building along with the Secretary of the Treasury. The position has considerably more cachet
than that of most bureau directors with the added public visibility of being a signer of U. S.
currency.
The Treasurer’s position has been in existence since the days of the Continental Congress,
initially responsible for raising funds for the Revolutionary War. The Treasurer’s function
evolved into responsibility for managing the receipt and disbursement of public funds held on
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deposit in the Treasury or other authorized depositories.
The heyday for the Treasurer’s office, at least from a U.S. currency standpoint, was from
the Civil War through World War II when the Treasurer served as the nation’s banker and
custodian of billions of dollars of the nation’s wealth. During this era, Congress, through the
National Bank Acts of 1863 and 1864, specifically charged the Treasurer’s office with custody
over the bonds purchased by national banks to secure their circulations.
Over the years, the Treasurer’s job has been redefined several times, notably in 1921 when
Andrew Mellon directed that the Treasurer report to the newly created Under Secretary of the
Treasury. Later, the Treasurer’s responsibility as custodian for the bonds securing national bank
notes vanished in 1935 with the demise of national bank notes.
After WWII, the Treasurer’s main currency issue and redemption responsibilities were
ceded to the Federal Reserve Banks. By 1974 the Treasurer was separated completely from the
Fiscal Service and its day-to-day cash management and reporting functions. Currently, the
Treasurer nominally oversees the BEP, the Mint, Fort Knox and serves as a liaison officer between
the Department of the Treasury and the Federal Reserve Board.
Our tale focuses on the Treasurer’s job back when the position had major currency
responsibilities.
Secretary of the Treasury Daniel Manning, an appointee of
Democratic President Grover Cleveland, transferred responsibility for
sealing U. S. currency from the BEP to the Treasurer’s office in 1885,
in an effort to better safeguard the currency. This was no small bone to
throw the Treasurer’s direction. It entailed establishment of the Issue
Division under the Treasurer, which was comprised of a large book
keeping force and a small industrial-scale printing operation that took
up much of the basement of the Treasury building.
This responsibility vanished in 1910, when the work of sealing
Treasury currency was reassigned to the BEP. It represents one of
those odd situations where the flow of budget and employees was from
the domain of a top Treasury official to a mere bureau. Watch the
behavior of the key players as this flow of authority occurs. It didn't
happen voluntarily!
Sealing Notes
There were two kinds of currency in the eyes of the Treasury in
1910. There was Treasury currency in the form of legal tender notes,
gold certificates and silver certificates that was the liability of the U. S.
Treasury. In contrast there also was bank currency in the form of
national bank notes that was the liability of the banks. What
constituted a monetized note depended upon which kind of note it was.
Legal tender notes, gold certificates and silver certificates were
not considered to be monetized until they carried a Treasury seal. In stark contrast, a national
bank note could carry a Treasury seal but was not considered monetized until it was signed by the
bankers who issued it.
This is no small distinction. A national bank note as printed by the BEP carried a Treasury
seal, but even so, it was considered by Treasury to be incomplete. Consequently, going into 1910,
the BEP was prohibited from printing seals on Treasury currency, but not on bank currency owing
to these distinctions.
Figure 2. Secretary of
the Treasury Daniel
Manning ordered in 1885
that the sealing of
Treasury currency be
carried out by the U. S.
Treasurer’s office as a
security measure so that
the Treasury Department
could control the final step
in monetizing the notes.
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The distinction in 1910 was silly, because the courts already had found that an unsigned
national bank note was the liability of the bank of issue and had to be redeemed, so it was money in
the eyes of the courts! Congress recognized this reality and considered Treasury’s stance on what
the BEP should and should not print on a note to be rather contrived.
Sealing to Treasurer’s Office in 1885
The BEP printed the seals on all U. S. currency prior to 1885. This changed abruptly
when Democrat Grover Cleveland assumed the Presidency and his appointees took charge of the
Treasury; specifically, Secretary of the Treasury Daniel Manning and Treasurer Conrad N. Jordan.
Jordan had formulated a plan to reform the Treasury Department as part of Cleveland’s campaign,
so upon election Cleveland’s appointee Secretary Manning selected Jordan to serve as Treasurer.
Manning (1885, p. 491) wrote
The method in which United States notes and gold and silver
certificates were issued at the time when the present Treasurer
[Conrad N. Jordan] assumed the duties of the office appeared to him
to lack the security which is had in every institution where such
instruments of credit are issued. In order to remedy this defect, in
part, the imprinting of the seal of the Treasury on the newly-printed
notes was transferred from the Bureau of Engraving and Printing to
this office. The incomplete notes are now received by the
Treasurer and completed by the imprint of the seal, then cut and
separated under his supervision.
An internal memo dated January 27, 1908 to Assistant Secretary Edwards in the
Treasurer’s office introduced into a Congressional appropriation hearing in 1908 fleshes out
Manning’s decision (House, Jan 28, 1908, p. 518).
In 1885, when the control of the Treasury Department
passed into the hands of a new political party, the officers who were
charged with the responsibility and payment of these notes as
obligations of the Government, after very careful and full
consideration of the situation, reached the conclusion that it was
unsafe to trust the final completion of the notes to the same
establishment that manufactured them. They held that inasmuch as
the officials of the Bureau of Engraving and Printing were not
bonded officers and were only responsible for the delivery of perfect
and imperfect notes to balance the blank paper received by them that
they should not be authorized to authenticate the notes or convert
them into a money obligation of the Government. They held that
the final authentication of the notes should be made by the officer
who was responsible for the money thus produced - this is, the
Treasurer of the United States. They also held that there was a
danger in transporting the completed notes through the streets from
the Bureau to the Department.
The central issue was who should have the power to monetize Treasury currency.
Obviously Treasurer Jordan wanted to reserve that authority to himself inside the Treasury
building. Two seemingly gratuitous secondary issues were raised to bolster the argument,
probably because they could be more easily understood by the public than the subtle concept of
monetizing a note. First, that there was a risk of theft of the completed currency as it was being
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transported between the BEP and the Treasurer’s office, and second, the Director of the Bureau of
Engraving and Printing was not a bonded official.
Figure 3. One justification used by Secretary Manning for moving the sealing operation to the Treasurer’s
office was that the transports carrying finished currency between the BEP and Treasury building were
vulnerable to theft, so he did not want monetized notes in those transports. Library of Congress photo.
Edward O. Graves, Director of the BEP in 1885, wrote the following in his annual report
(Graves, 1885, p. 307-308):
Since the close of the fiscal year an important change has
taken place in the method of finishing United States notes. A
committee of officers of the Department was directed by the
Secretary of the Treasury, on May 29, to devise and recommend to
him a plan for imprinting the seals upon United States notes, and
gold and silver certificates, and for separating the same, under the
direction and supervision of the Treasurer of the United States.
The committee, in its report, submitted the following propositions:
1. That public policy requires that there should not only be
absolute security against fraud and over issue in the engraving
and printing of the public securities, but that the public should
be assured in some conclusive way that such security exists.
2. That such security can best be attained by intrusting the final
authentication of the public securities to other control than that
of the mechanical establishment by which they are executed.
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3. That this object may be accomplished with reference to United
States notes and certificates by intrusting to the Treasurer of the
United States the duty of affixing the seal of the United States
thereon.
4. That it is indispensable, in order to secure the full assurance of
security at which this plan aims, that the imprint of the seal
should not be made in the building where the securities are
executed, but in the Treasury building, under the direct
supervision of the Treasurer of the United States.
5. That, having examined the question, we believe that no legal
obstacle exists to the transfer to the office of the Treasurer of the
United States of a sufficient number of operatives and machines
from the Bureau of Engraving and Printing to perform this duty,
and to charging such salaries and other expenses connected
therewith to the appropriation for "labor and expenses of
engraving and printing."
6. That the notes and certificates complete, except as to the
imprinting of the seal thereon and the separation thereof, should
be delivered by the Bureau of Engraving and Printing to the
Treasurer of the United States, and that the responsibility of the
Bureau should end and that of the Treasurer begin upon such
delivery.
7. That, in order to fully fix the responsibility of the Treasurer of
the United States, the notes and certificates should be taken up
in the cash account of his office immediately on the imprinting
of the seal thereon.
This report having been approved by the Secretary, steps
were at once taken for the transfer to the office of the Treasurer of
the United States of the presses, machinery, and operatives required
to carry its recommendations into effect. The necessary
arrangements were completed on the 16th of July, and on that day
the sealing and separating of the notes were begun by the Treasurer's
Office, to which they are transferred by this Bureau unsealed and in
sheets. This plan has worked to the satisfaction of all
parties concerned. It relieves the Bureau of
Engraving and Printing of the risk of holding finished
notes, and deprives it of the power to produce perfect
securities of any kind.
Figure 4. Edward O. Graves, Director of the Bureau of
Engraving and Printing in 1885, ceded the sealing and
separating operations for Treasury currency to the U. S.
Treasurer’s office and made arrangements for the transfer
of the presses, other required machinery and operatives
required to carry out the work in the basement of the
Treasury Building. Photo from BEP (2004).
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Graves’ gave up a rather modest operation in 1885. Two pressmen, three separators who
cut the sheets into individual notes and three sheet feeders were transferred to the Treasurer’s
office to seal and separate Treasury currency, along with their budget. New Treasurer Conrad
Jordan included the following statement in his letter accompanying his 1887 budget request to
Congress (Jordan, Oct 29, 1885).
Mr. E. O. Graves, Chief of the Bureau of Engraving and
Printing, has expressed the desire to have those employees of his
office who are now engaged in sealing and separating United States
notes under my supervision transferred to the rolls of this office. I
fully concur as to the propriety of such transfer. The work is being
done for the Treasurer’s office, and the persons engaged on it should
be paid on the Treasurer’s rolls.
This was an elegant bureaucratic
maneuver. Hiding behind approving
Secretary of the Treasury Manning, Jordan
took some of Graves' people and part of his
budget and claimed it was done at Graves'
request. It worked. The sealing and
separating of U.S. currency was performed in
the Treasurer’s Issue Division for the next 23
years!
Congressional Push for Efficiency
Beginning in 1908, during the latter
part of Theodore Roosevelt’s term as
President, strong Republican pressures began
to build in Congress to streamline the
government agencies and reduce Federal
spending. Operations within the Treasury
Department were scrutinized from A to Z over
the next three years by not only the Congress
but also by efficiency consultants hired by
Treasury.
Currency production was not immune,
and the earliest changes were brought about by
Congressional pressure rather than from within
Treasury. Important for the discussion at
hand were budget appropriation hearings held
in the House on January 28, 1908, where
Treasurer Charles H. Treat and Deputy Assistant Treasurer G. C. Bantz found themselves being
grilled by James A. Tawney, Republican from Minnesota. Selected but abridged excerpts
pertaining to their testimony concerning the sealing of Treasury currency follow (House, Jan 28,
1908, p. 509-518).
Figure 5. View of the storage shelves in the interior
of the Treasurer's Reserve Vault, the vault that
received the notes after they had been sealed and
packaged in the Treasurer’s Issue Division.
Library of Congress photo.
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The first order of business of the appropriations committee was
to ascertain if the authority for sealing the notes by the U. S. Treasurer
was a statutory requirement or being carried out as a result of
departmental policy. Using an oblique reading of the laws, Treat and
Bantz claimed that their separate sealing operation indeed met the intent
of the legislation. However, the committee concluded in rather short
order that in fact the separation of sealing from the other printing steps
was a matter of policy promulgated by Secretary Manning in 1885.
Tawney then pressed: “What would be your objection to the
work being done in the Bureau of Engraving and Printing, providing it
could be done, in the judgment of the committee, at a very great less
expense?”
Treat equivocated citing the security concerns originally raised
by Secretary Manning in 1885.
Bantz injected: “There would be no check on the Bureau of
Engraving and Printing as to the money in their hands if they put the
seal on the notes. If they completed the whole thing the Treasurer
[Treat] could never know what amount was really issued. Now, he
has that check on the matter. The bills are sent to him and he
completes them and knows all about them.”
Treat then responded: “If the vans were attacked in transit
they [thieves] would get only incomplete money.”
Treat: “I talked with Mr. Sullivan [Director of the BEP] about this matter and Mr.
Sullivan said, ‘Mr. Treat, I want this work to stay where it is.’ I told him that we were very much
pressed for room in the Treasury and as you who have been there know, we are as closely packed
as if we were in a sweat shop. Mr. Sullivan said: ‘In the first place, I have not the room here, I
could not spare the room, and in the next place it is a check. It relieves me of a great responsibility
to know that all these sheets are checked up and you report to me any discrepancy at once, and if
we did not have that check, and I had to leave it to my subordinates, I think it would be a very
imperfect piece of business, and therefore my experience is that you should keep it there and do the
best you can.”
Next in the docket was BEP Director Thomas J. Sullivan, a
gentleman of 63 years who was a long term accountant with the bureau with a tendency to be
deferential to his superiors in Treasury. Sullivan pointed out that currently there were 166 people
employed at Treasury to seal, sever and package notes. He went on to say that if new presses
were purchased by the BEP that could both number and seal Treasury currency, it would make 30
Figure 6. U. S. Treasurer
Charles H. Treat, in office
from 1905 to 1910,
vigorously resisted ceded
the sealing of Treasury
currency back the BEP, an
action that would greatly
diminish the
responsibilities of his
office. Photo courtesy of
FindAGrave.com (2014).
Figure 7. BEP Director Thomas J. Sullivan, deferring to his Treasury Department
superiors, resisted Congressional pressure to transfer sealing operations back to the
Bureau as a cost-savings measure, in part claiming the Bureau did not have room to
house the 166 people employed at Treasury to seal, sever and package the completed
notes. Sullivan died in 1908. Photo from BEP (2004).
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existing numbering presses obsolete, an apparent waste. He also averred that new presses would
increase mutilation rates and produce a lesser quality seal than printed at Treasury.
Sullivan died in 1908, and was succeeded by Joseph E. Ralph, a
brash confident individual who started as a plate cleaner in the BEP in
1895 and worked his way up. His baptism in the hot seat before the
House appropriations committee came on January 26, 1909, when he was questioned by
Congressman Walter I. Smith, the Republican representative from Iowa’s 9th District. The
following are the main points Ralph made about the seal issue (House, Jan 29, 1909, p. 169-172).
Smith: “You have been seeking to devise a system by which this [number and seal the
notes] might all be done at one time and the note trimmed?”
Ralph: “Yes sir. I have let contracts for three presses to three different firms. The idea
was to get competition with the understanding that the press that gave us the greatest number of
impressions and did the work in the best practical way would be the press that we would select for
doing this work. I have let the contracts for the presses, and I expect in the next sixty days to
install them.”
A bit later Ralph stated: “I am figuring on doing the sealing. If I do the sealing, I will
save you the money appropriated for the sealing in the Treasury, approximately $110,000, and in
addition I will save $53,000 in the bureau.”
After a bit of back and forth, Ralph continued: “The Treasurer is going to insist upon
doing the work. You had this question up two years ago with the director, my predecessor, and
with the Treasurer’s office, and they presented to you in concrete form and in cold type that it was
not practicable or feasible to do this work. There was not any doubt in my mind that it was
feasible, but the Treasurer did not want to let go of that work. He said to this committee, ‘I am a
bonded officer, and I am responsible for this work, and it should be under my supervision.’ . . . I
have no reason to say that we cannot do it as safely and with as great security as it is done now.
We are doing the national currency. We print on an average $250,000,000 every year, and this
year we will print $750,000,000 of national currency. We have accounted for every sheet and we
have surrendered every sheet to the Comptroller of the Currency, and I don’t think there is any
question about the handling and safeguarding of it.”
Ralph wanted no ambiguity. “I simply want to call your attention to the fact that there
should be some form of legislation, some proviso in the bill, that would say which bureau, the
Treasurer's office or the bureau, should do this work when the machinery which will do it is
perfected.”
Smith fretting the transport safety issue: “Who does the transporting from your bureau to
the Treasury Department?”
Ralph: “I am responsible until it is delivered into the Treasurer’s hands. We deliver to
Figure 8. Confident BEP Director Joseph E. Ralph aggressively moved forward
on obtaining presses that could simultaneously number, seal, sever and collate
Treasury currency, tipping the scales to the return of the sealing operation to the
Bureau in 1910. The new presses required that the final inspection of the
currency at the Bureau be on completed notes, not unsealed sheets, so the concept
of using star replacement notes that could be inserted rapidly to replace defectives
was born. Photo from BEP (2004).
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them a load of work containing so many notes of certain denominations, representing a value of so
much money, subject to their count, and when we come back in the afternoon they give us a
permanent receipt. It is first receipted for subject to their count. We deliver it in the morning and
they count by the afternoon, and we deliver again in the latter part of the day and they count that by
the end of the day or early next morning, and then we get a final receipt. I have never had a
question arise between the Treasurer’s office and the bureau as to the correctness of the count.”
Smith: “Have you ever had such a question arise with the Comptroller of the Currency?”
Ralph: “No, sir. We had such an instance with the internal revenue office, and I sent a
counter over there and found that the discrepancy was on their part. I am very sure that our
system of checks is about as correct as human ingenuity can provide in the bureau for safeguarding
against such a thing.”
Smith, pleased with his witness, let the hammer fall on the Treasurer’s office: “Mr.
Courts [a committee staffer] suggests that you furnish the committee with a description of the
work, so that we can incorporate it in the bill.”
Sealing Goes to the BEP
Franklin MacVeagh, the new Secretary of the Treasury under President Howard Taft,
reported the following under the heading Efficiency and Economy in his first annual report
(MacVeagh, 1910, p. 16).
Among the changes in the Treasury Department in
Washington is the elimination of the issue division of the
Treasurer's office. The double printing of the Government notes,
first in the Bureau of Engraving and Printing and again in the
Treasury building, has in this way been stopped. Unnecessary
countings of these notes have been in consequence cut out.
Numerous and expensive counts of the distinctive note paper and
the non-distinctive paper used for stamps have been done away
with; and all this paper has been removed from the Treasury
building to the Bureau of Engraving and Printing where it is used;
and the amount of the stock has been reduced to the needs of
manufacturing. A businesslike handling of all this paper has been
established; and the printing, under the greatly improved methods
suggested and carried out by the Director of the Bureau, is a large
part of the completed improvement. We have established the
cancellation at all of the sub treasuries of the notes sent from them to
Washington for redemption; and they are now sent by registered
mail as merchandise without value instead of being sent by express
as money.
Ralph had delivered on his serial, sealing, separating and collating overprinting press, and
was in the process of buying 15 of the machines (BEP, 1962, p. 59). The BEP was now delivering
completed packages of notes instead of incomplete sheets to the Treasurer. His new Harris
presses were high capacity.
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An internal Treasury Department Memo dated April 12, 1910 said it all.
Mr. Ralph informs me that yesterday that the new machine
at the Bureau sealed, numbered, separated and collated 14,000
sheets of notes, or 56,000 notes, in the regular working day of eight
hours. The mutilation was one-fifth of one per cent of all
operations. He also informs me that the mutilations in the
Treasurer’s office for the sealing and separating alone amount to
six-tenths of one percent.
The Harris rotary presses produced notes, not sheets, so the final BEP inspection was on
the notes. The old method of culling misprinted sheets and replacing them with make-up sheets
with identical serial numbers posed an insurmountable bottleneck. Make-up sheets printed
individually on hand-operated paging machines had to go. Ralph proposed and newly appointed
Treasurer Lee McClung accepted the concept of using star notes to replace defectives in order to
maintain counts (Ralph, 1910).
When sealing went back to BEP, the size of the operation was significantly larger than
what the Treasurer inherited in 1885. The Treasurer’s office sent 16 pressman, 42 separators and
22 sheet feeders, along with their budgets, back to the BEP (MacVeagh, 1909, p. 37-38). This
reduced the Treasurer’s workforce by approximately 13 percent.
The Flow of Power
This is a rather atypical story of a transfer of authority - and budget - from a prestigious
Treasury office to an underling Treasury bureau. Although internally resisted within the Treasury
Department, the real powers in the saga - the elected Congressmen - cajoled and pressured for the
Figure 10. The Harris presses
were behemoths that serial
numbered and sealed the
notes, cut them from the sheet
and collated them in serial
number order. The feed stock
for the presses consisted of
4-subject sheets. If the backs
and faces had been printed
from 8-subject plates, the
sheets were cut in half
vertically prior to being fed
into the presses. Star notes
owed their invention to the use
of these machines.
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change. They were nobly guided by their implicit obligation to better allocate taxpayer dollars.
The matter was not settled with the Congressmen until the financial savings reaped from the
advent of the Harris machine trumped Treasury’s security concerns over moving the sealing
operation back to the BEP.
Star notes were born directly out of this chain of events.
Two Closing Factoids
You now know about make-up replacement and star notes that were used to replace
defectives caught by the BEP inspectors, but did you wonder what the Treasurer’s inspectors did
when that office created misprints while sealing the sheets between 1885 and 1910? This facet of
the replacement tale never has been told in the numismatic literature.
The Treasurer’s office simply took regular production sheets delivered from the BEP and
substituted them for the ruined sheets. Obviously they had to maintain a set-aside supply of all
current sheets for this purpose. Thus the counts in the packs were maintained, but bank tellers with
a sharp eye would occasionally find notes with totally out-of-sequence serial numbers mixed in.
BEP Director Ralph, who was central to these events, presided over the construction of a
new building to house the BEP. Planning for the new building, today’s main Washington plant,
began in 1906, construction begun in 1911, and the new building was opened March 19, 1914.
References Cited
Bureau of Engraving and Printing, 1962, History of the Bureau of Engraving and Printing, 1862-1962: U.
S. Government Printing Office, Washington, DC, 199 p.
Cortelyou, George, 1908 Estimates of Appropriations Required for the Service of the Fiscal Year Ending
June 30, 1910: U. S. Government Printing Office, Washington, DC, Treasury Department
chapter, various pages.
Graves, Edward O., 1885, Report of the operations of the Bureau of Engraving and Printing: p. 312-313;
in, Manning, Daniel, Annual report of the Secretary of the Treasury on the state of the finances for
the year 1885, vol. 1: U. S. Government Printing Office, Washington, DC, 745 p.
House of Representatives, Jan 28, 1908, Seals on United States notes; in, Appropriation Hearings for 1909:
Government Printing Office, Washington, DC, p. 509-518.
House of Representatives, Jan 26, 1909, Sealing, numbering and trimming notes; in, Hearings, Sundry Civil
Appropriations Bill 1910: Government Printing Office, Washington, DC, p. 169-172.
Jordan, Conrad, October 29, 1885, Letter from the U. S. Treasurer to Secretary of the Treasury Daniel
Manning, submitted as Appendix E with Estimates of Appropriations for 1887: U. S. Government
Printing Office, Washington, DC, p. 264.
MacVeagh, Franklin, 1909, Estimates of Appropriations Required for the Service of the Fiscal Year Ending
June 30, 1911: U. S. Government Printing Office, Washington, DC, pp. 37-38.
MacVeagh, Franklin, 1910, Annual Report of the Secretary of the Treasury on the state of the finances for
fiscal year ended June 30, 1910: U. S. Government Printing Office, Washington, DC, 470 p.
MacVeagh, Franklin, 1912, Annual Report of the Secretary of the Treasury on the state of the finances for
fiscal year ended June 30, 1911: U. S. Government Printing Office, Washington, DC.
Manning, Daniel, 1885, Annual report of the Secretary of the Treasury on the state of the finances for the
year 1885, vol. 1: U. S. Government Printing Office, Washington, DC, 745 p.
Manning, Daniel, 1885, Estimates of Appropriations Required for the Service for the Fiscal Year Ending
June 30, 1887: U. S. Government Printing Office, Washington, DC, p. 24.
Ralph, Joseph E., April 14, 1910, Letter from BEP Director to U. S. Treasurer Lee McClung pertaining to
the transfer of currency sealing and separating machinery from the Treasurer’s office to the BEP:
Bureau of Engraving and Printing, Copies of Official and Miscellaneous Letters Sent, vol. 280, p.
275-277, U. S. National Archives, College Park, MD (318:450/79/08, v. 280).
Paper Money * Nov/Dec 2014 * Whole No. 294
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TREASURY RECTANGLES ON 2nd ISSUE FRACTIONAL CURRENCY
by Rick Melamed
Unlike coins, or currency in denominations of $1 or more, fractional currency was only made
during a short window of time, 1862‐1876, and for a singular purpose (to alleviate the shortage of
coinage in the U.S. due to hording by the public). So these are universally old…134 years or more. The
fascinating story of fractionals has been painstakingly researched over the past few decades though
certain aspects are still unknown. What we do know is fractionals were issued in 5 series, with the
government constantly trying to improve the process to thwart counterfeiters. The first issue was a
simple 2 step process called postage currency. When counterfeiters easily faked the first issue notes,
the government came up with newer and cleverer ways to thwart the clandestine operators (used in the
2nd – 5th issues). Bronze overprints were added, special fiber paper was tried, the addition of color
threads in the notes, treasury seals, more intricate designs, etc.
One of the byproducts of the anti‐counterfeiting measures enacted by the government was the
use of Treasury Rectangles (on 2nd issue notes). With some digging we are able to piece together a
fairly comprehensive explanation of their existence. In a nutshell, Congress instructed the Treasury to
come up with distinctive paper to deter the counterfeiters. Rather than produce the special paper
requested, the Treasury came up with a process that circumvented the Congressional order by stamping
the sheet with a “Treas. Dpt.” impression on the edge of the sheet. Other research stated that
Treasury Rectangles were placed on every sheet, but in the Milt Friedberg’s “Encyclopedia of United
States Postage & Fractional Currency – 5th Edition 1997”, it was reported that the Treasury Rectangle
was stamped on approximately every 1000th sheet. This seems more plausable considering the paucity
of known examples (less than 50) and the fact that there is only one known complete sheet with the
Treasury Rectangle.
Friedberg’s narrative is illuminating, stating that the bronzing process used on the 2nd issue ovals
and reverse surcharge, also gave the rectangle its distinctive color (which explains why the Treasury
Rectangle matches the bronzing on the 2nd issue notes). The Treasury Rectangle was supposed to be
placed on the outer edge of the sheet; so when the sheet was cut into individual notes, the rectangle
would be trimmed away. In most cases, that’s probably what happened. But with any manually
intensive process, the person(s) applying the stamp would invariably become careless and the stamp
made itself onto the actual note. A very rare occurrence indeed!
The following reference comes from page 29 of Milt’s Encyclopedia – 5th Edition 1997:
A different attempt to produce a distinctive paper for the bureau was detailed in the testimony
of Wm. H. Coleman, Assistant Clerk, Paper Department (May 1865 to October 1866) in Document #273
of the 3rd Session of the 40th Congress. Coleman testified that they hand stamped each sheet of paper
with a rubber stamp reading “Tres Dpt” in a rectangle. His testimony gives no clue to either the success
or length of the experiment. During this same time period, the Auditor’s office took inventory of all
paper stocks in the various storage areas of the Bureau. It is postulated that the rubber hand stamp
reading “Tres Dpt” was placed on every 1000th sheet as a marker. In both cases, when the sheets were
eventually printed, the bronzing process bronzed the marker, thus producing another collectible variety
of (the) note.
(Author’s note: The aforementioned information was only found in Milt Friedberg’s 5th edition
in 1997 and not in 1st edition Fractional encyclopedia (1976) indicating that Friedberg came upon the
information later in his research).
Paper Money * Nov/Dec 2014 * Whole No. 294
412
The following text concerning Treasury Rectangles comes from the Stack’s public sale of the
Herman Halpern Collection from March 1993 (note that the text states that the Treasury Rectangle was
printed on every sheet, but Friedberg’s research from a later date – 1997‐ states every 1000th sheet):
“The Second Issue “Treas. Dpt.” Rectangles are one of the rarest and most interesting varieties
of the Second Issue. When Congress became concerned with counterfeiting and Treasury Department
Security, it issued orders that were to be printed on “distinctive paper.” The Treasury’s experience to that
point (primarily involving Dr. Gwynn’s paper experiments) were largely unsatisfactory, and they had by
then returned to regular banknote bond paper. To satisfy (or circumvent) the Congressional mandate,
one lower level Treasury bureaucrat came up with the idea of printing a bronze rectangle with “Treas.
Dpt.” inside it on every piece of paper the Treasury had for banknotes, thus making it “Distinctive paper.”
A fudging of the rules perhaps more reminiscent of some recent administrations than early ones, but it
served the purpose! The rectangle was on the edge of the sheet, and was intended to be trimmed off,
thus accounting for their rarity today.
Of the four (4) Second Issue denominations, only the 50¢ is still unknown with a “Treas. Dpt.”
rectangle. The 5¢ notes are the rarest, the 10¢ next, and the 25¢ notes easily the most “common” with
perhaps a dozen known.
Two rectangles were in the Halpern Sale:
Lot 799 ‐ 5¢ Fr. 1232 VF to XF with a Treasury Rectangle sold for $220.00
Lot 800 – 10¢ Fr. 1245 in AU with a Treasury Rectangle sold for $575.00.
There is additional information from the Currency Auction America’s auction of the Milt
Freidberg collection in January 1996. It was reprinted in the May 2005 Heritage Auction of the Tom
O’Mara collection and in the May 2006 Heritage Internet Auction and is reprinted with permission:
Lot 22018 ‐ Fr. 1232 Milton 2R5.1i 5¢ Second Issue Treasury Rectangle Choice New.
Treasury Rectangles have been an important item in Fractional Currency collecting ever since they were
first noticed by collectors, which was shortly after the end of the circulating period. There are two
different accounts of the origin of these Treasury Rectangles. Milt Friedberg has located a document
from the Third Session of the Fortieth Congress, where in testimony a Mr. William Coleman testified that
he and a Mr. Drummer counted the blank banknote paper before it was printed and stamped it with a
little stamp consisting of a rectangle with "Treas Dpt.," inscribed on it. This rectangle was stamped on
the corner of the sheet to indicate that it had been counted. A second version relies on the research of
Martin Gengerke. That version is that Congress, having become concerned with counterfeiting, ordered
the Treasury Department to print notes on distinctive paper. The Treasury Department circumvented
Congress's orders by stamping each sheet: Treas Dpt thereby making the regular banknote paper
distinctive, instead of having to go back to the drawing board and print Experimental notes on various
forms of paper, a process which had already been done, and during which Treasury Department officials
never found a satisfactory substitute for the regular banknote paper. Several different sizes and shapes
of Treasury Department rectangles are known, and it's possible, perhaps even likely, that both of these
accounts are correct. In either case, the rectangle was at the very edge (of the) sheet, and it was
intended to be trimmed off, accounting for their extreme rarity. The Five Cent denomination is the
second scarcest on which to find these Treasury Department bronze rectangles. At the time of issue of
Milt Friedberg's massive Encyclopedia of Fractional Currency, no Five Cent Treasury Rectangle had been
discovered. Currently, there are about fifteen 25¢ notes, ten 10¢ notes, six 5¢ notes and to our best
knowledge no 50¢ is known (31 in total).
Paper Money * Nov/Dec 2014 * Whole No. 294
413
Rob Kravitz in his A Collector's Guide to Postage & Fractional Currency – 2nd Edition states:
A lot of the first issue notes were counterfeited. Therefore a concerned Congress ordered the
Treasury Department to print notes on distinctive paper. They had no distinctive paper at the time and
were pressed for time to start printing the second issue notes. By taking regular banknote paper and
imprinting with a rectangular Treasury stamp and making it Treasury paper, therefore making it
distinctive paper. The rectangle was at the very end of the sheet and it was intended to be trimmed off
when the sheets were cut, which accounts for its rarity. These are only found on 2nd issue notes and the
following are the number known:
‐Fr. 1232 – One full sheet with seal on lower right bottom corner (ex. Rockholt/Milt Friedberg)
‐Fr. 1232 5¢ notes – 6 known
‐Fr. 1244 10¢ notes – 10 known
‐Fr. 1283 25¢ notes – 15 known
‐Fr. 1316 50¢ notes – none known
(Author’s note): As time moves forward and the amount of notes with Treasury Rectangles are codified
and the estimated population rises. As of early 2014 and according to past Fractional Club (FCCB)
President Mike Marchioni: “I believe there are about (21) Fr. 1283, (10) Fr. 1232, (8‐10) Fr. 1244 & no 50
cent notes. Most folks believe the 5¢ is rarer than the 10¢, but I’ve owned twice as many of the 5¢s. As
time moves forward, the amount of known notes with Treasury Rectangles has increased.”
Mike indicated that his estimated count of 39‐41 examples did not include the (7) Treasury
Rectangle notes in the John Ford Sale (Stacks Ford Sale XIX; October 1997). Ford’s holdings contained:
(3) 5¢ FR1232 and (4) 25¢ FR1283. The total estimate including Ford’s notes stands between 46‐48
known examples.
Any serious fractional collector seeks a Treasury Rectangle note for their holdings. Aside from
their historical significance, they sure are striking. Any example always adds considerably to their value.
For this article, I’ve selected a few examples for observation.
A Fr. 1232 Graded PCGS40 sold for
$1,437.50 on Heritage in 2008. It
contains 80% of the rectangle on
the back.
A second Fr. 1232 with a full
Treasury Dept. rectangle in AU
sold for $747.50 on Heritage in
2006.
A Fr. 1244 with the rectangle on
the face grading PMG45 sold for
$920 by Heritage in 2010. An
astonishing price clearly increasing
its value by 15 to 20 times, most
likely because most of the
rectangle is present.
Paper Money * Nov/Dec 2014 * Whole No. 294
414
The FR1283 at left graded VF and contains the rectangle on the face, was
sold by Heritage for $488.75 in April 2006. This version is unusual since
the ink color is green, all other rectangles researched on the HA site have
a bronze color. This however, is a case of oxidation since the bronze oval
has also turned green and we know from the research that the Treasury
Rectangle was colored with the same bronzing powder used in the oval.
The following three Treasury Rectangle beauties are from the John Ford Sale XIX October 2007
with the price realized. All three contain the full Treasury Rectangle.
A stunning uncut horizontal strip of (3) FR1245 is AU condition sold by Heritage in May 2005 for
$1,035.00. Note the Treasury Rectangle on the bottom right corner.
A very lovely uncut horizontal pair of FR1244 with 90% of a Treasury Rectangle in the bottom
right corner of the face that sold for $747.50 in March 2007
Lot 343 – FR1232 –$483.00 Lot 344 – FR1283 –$747.50 Lot 345 – FR1283 – $690.00
Paper Money * Nov/Dec 2014 * Whole No. 294
415
Unfortunately many of the Treasury Rectangles are partials…some just showing the frame line.
This FR1283 is typical of most examples with maybe 25% of the rectangle. This specific example was
unsold at 2 Heritage auctions but is valued at ~$500.
There is also an interesting uncut strip of (4) FR1232, from a private collection, displaying a
partial Treasury Rectangle on the upper left reverse as well as one known example of an uncut sheet of
(20) FR1232 from the Currency Auctions of America Milt Friedberg auction in January 1997. It sold for
$770.00
It should be reiterated that there are no known 2nd issue, 50¢ fractionals displaying a Treasury
Rectangle. The population is way too small to hypothesize a reason. For years it was thought that no 5¢
existed, but that has changed so perhaps there is a 50¢ version waiting to be discovered.
In conclusion, 2nd issue fractionals with the Treasury Rectangle are worthy of serious discussions.
It is significant that Congress and the Treasury Department took additional steps to safeguard the
country’s currency and any piece, even if it contains a partial rectangle, is evidence of action on the part
of the government.
A special must extended to my son – David Melamed, Jerry Fochtman, Benny Bolin, Bob Laub,
Len Glaser, Rob Kravitz and Mike Marchioni for their help and expertise. Also thanks must be extended
to Stacks/Bowers and Heritage Auction Galleries. Their Auction Archives are an invaluable research tool
that has contributed so much to fractional research.
SPMC’s Obsolete Database Project
The Society has been involved in the cataloging of obsolete paper money and scrip for
nearly 50 years. The Board of Governors recently approved an exciting new initiative that will
result in an on-line database chronicling known notes and scrip from across the nation. The site
will be interactive and allow users to both search for and add new notes. State Experts will
oversee each state and virtually all notes will have images available.
Governor and committee member Wendell Wolka will provide an overview of the
website and its capabilities at the SPMC regional meeting at the FUN show in Orlando in January.
Be sure to check the SPMC website for further details.
Paper Money * Nov/Dec 2014 * Whole No. 294
416
Lyn Knight Currency Auct ions
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Fr. 379a $1,000 1890 T.N.
Grand Watermelon
Sold for
$1,092,500
Fr. 183c $500 1863 L.T.
Sold for
$621,000
Fr. 328 $50 1880 S.C.
Sold for
$287,500 Lyn Knight
Currency Auctions
Deal with the
Leading Auction
Company in United
States Currency
U n c o u p l e d:
Paper Money’s
Odd Couple
More on Banknote Companies
Joseph E. Boling Fred Schwan
with an addendum from Mark Tomasko
Last issue Fred addressed a couple of se‐
curity printers he is interested in; I talked
about the printing technologies they used. We
embarrassed ourselves by making a blanket
statement about the E. A. Wright Bank Note
Company’s printing of WWII notes for French
colonies under control of the Free French.
The statement was “...intaglio printing was
not used by this firm for any of its notes.” I
was looking at lots in one of the ANA auctions
and stopped at a middle‐denomination WWII
Martinique note ‐ thinking that it looked very
good for a lithographed note. So out comes
my 20x glass, always in my pocket, and son‐
of‐a‐gun ‐ the note is intaglio!
I bought a high‐grade Martinique five‐
franc note at the Royal Canadian Numismatic
Assn. convention in Mississauga the following
week. It is also intaglio face and back. So now
we need to go back and inspect every E. A.
Wright product and update Schwan‐Boling’s
descriptions for the next edition.
None of this affects my descriptions last
issue of the distinctions between litho‐
graphed and letterpress printing. This month
we move on to printing from engraved plates
and other techniques that result in a printed
product that has ink or other deposited mate‐
rial sitting above the surface of the note’s pa‐
per.
Intaglio printing, also called recessed
printing, and usually referred to simply as “
e n g r a v e d , ” u s e s m e t a l
p l a t e s i n w h i c h a
BOLING continued on page 420
I have very mixed feelings when my copy
of Paper Money arrives. I am always excited to
read the news and features that it contains,
and of course I am also happy to see our joint
column in its final form. The cycle from inspi‐
ration through publication is very like a sea‐
sonal change life cycle. For Joe and me the
hardest part is planting the seed—about what
shall we write? After that our 100+ years of
collecting experience will generally kick in so
that there should not be too much difficulty.
Still, near the end of the preparation cycle, I
usually get tired of the project and have to
count on Joe pushing and pushing. He always
does a great job of that! You can count on Joe.
This time was a little different. We decid‐
ed to go back to the subject of the previous
column to clean up a few places where we
had gone wrong. That meant that I would
write some more about Central Banknote
Company, E. A. Wright Bank Note Company &
possibly some other bank note companies.
The Paper Money issue came in and the
clock started to tick, tick, tick. Since we had
decided on a topic, I thought that this issue
would be easy. From that point it has been an
adventure. I had received a wonderful email
from Mark Tomasko about the Central Bank‐
note Company. The biggest news was that he
had written an in‐depth article on the compa‐
ny for the Bank Note Reporter in 1981. Fur‐
thermore, he quite generously offered to send
me a copy. That was an offer that you can be
sure I jumped right on.
Paper Money * Nov/Dec 2014 * Whole No. 294
417
I was (and still am) excited about the arti‐
cle, but I was mortified that I had missed it.
How could I have missed such an important
(to me) article?
Then two conflicting things happened. I
waited and waited and fended off reminders
from Joe. Of course he was acting for Benny
and the SPMC, and he was correct in pushing,
but the prodding still hurt. Every day I picked
up the mail, but nothing from Mark.
I wanted to proceed, but what to do? I
told you that we had decided on a subject and
that that is the hardest part. Joe had his part
finished, so it would be real hard to make
something fit.
Finally, I was saved. Sort of. The long
awaited package arrived today, October 1st.
Mark had NOT let me down. It had been
mailed from New York City on September
22nd! I wonder if the Postal Service is going
to send me an invoice for storing the pack‐
age? Will the SPMC auditor catch that on my
expense report?
Enough of the whining. Actually, the wait
was worth it! First, Mark sent me actual tear
sheets from the January 1998 Bank Note Re‐
porter. This is a great article! Congratulations
to Mark and to the Bank Note Reporter for
creating and publishing such a great story. It
is three full pages replete with many great
images.
Mark tells the story of Central from the
perspectives of Fred R. Esty Jr. and Sr. Mark
was able to interview Fred Esty Jr. and his
brother Frank about Central Banknote Com‐
pany, founded by Fred Esty Sr.
I will pick out some highlights from the
article, but if you are interested in the subject
at all, you should read the entire piece. Let
this serve as a suggestion to Mark and Benny
to rerun the article in Paper Money. Mark
probably has some new information that
could be included to make it even better.
Heck, I may have a tidbit or two for Mark.
Fred Esty Sr. was born in 1889. By 1910
Fred was working at Columbian Banknote
Company in Chicago. In 1919 Fred left Co‐
lumbian and formed Central Banknote Com‐
pany. In the 1920s a Central plant was
opened in New York City. July 14, 1926 was a
big day in the company’s history. On that day
Central was approved by the New York Stock
Exchange as a printer of stock certificates to
be traded on the exchange. That was a critical
endorsement for a security printer.
In 1934 Fred “Russ” Esty Jr joined his fa‐
ther at Central. This was the height of the de‐
pression, so prospects were not great. This is
the period during which Frank Esty also
worked for his father.
In the previous article I reported simply
that the E. A. Wright Bank Note Company had
purchased the Central Banknote Company.
That was how E. A. Wright III had reported it
to me. Mark has some much more interesting
details and commentary on the transaction.
Mark reports that in about 1939 Fred
Esty Sr. had been working on a merger of
Central with Columbian Banknote Company,
but that Esty suddenly died. Esty’s partners
then asked E. A. Wright II to take over opera‐
tions of Central as managing director. Russ is
reported to have been unhappy with the
Wright management, and the firm soon was
in bankruptcy. Central’s dies, rolls, plates, and
other materials found their way into the
hands of the Wright company.
The tone of this takeover sounds very dif‐
ferent from the outright purchase implied by
Wright III. The truth of the matter probably
lies somewhere in between. Nonetheless,
shares of companies that were Central cus‐
tomers promptly began appearing with the
Wright imprint. Some of these had new art,
but most used the Central art work.
Tomasko goes on to describe further ca‐
reer moves by Russ Esty, culminating in his
appointment as president of Security‐
Columbian Banknote Company. Mark even
has a newspaper clipping announcing this
appointment. Russ died in 1995.
Mark has a nice selection of images for his
article. Of course he has some Central Bank‐
note Company stock certificates, but what I
really like are not products of the company,
but artifacts (or photographs of artifacts). The
highlights are on page one of the article. The
first is a 1926 photograph of a Central Bank‐
note Company armored car with guard and
driver, staged on the street at 319 North Al‐
Paper Money * Nov/Dec 2014 * Whole No. 294
418
bany Ave., Chicago—the Central office and
plant. This is a great image for bank note col‐
lectors and automobile fans. Pictures of
ca.1926 armored cars must be rare (but what
do I know?).
The next image is of a front window dis‐
play for Greenebaum Sons Investment Com‐
pany. That firm was Central’s biggest custom‐
er in the early years. The title of the exhibit in
the window is “How Greenebaum bonds are
made.” A steel plate, lithographic stones,
specimens, and proofs are displayed in the
window.
The last photo on the page is of work in‐
side the Central plant. Two wonderful ma‐
chines are shown: a geometric lathe and a
transfer press. You certainly do not see pic‐
tures of these being operated very often.
The second page of the story has two real‐
ly great artifacts. The first is a letterhead. I
have to admit that I collect bank note compa‐
ny letterheads, and I think that I might have a
Central letterhead—somewhere. Like a bank
note company’s own stock certificates, I have
always thought that bank note companies
must give special attention to their own sta‐
tionery, so I figure that I should also give spe‐
cial attention to their letterheads and stock
certificates. Letterheads often provide good
research material.
The other item on this page, and the last
of Mark’s items that I will discuss, is a really
great advertising blotter promoting Central
Banknote Company. Mark says that it is the
only Central advertising piece that he has
seen. I have not seen any others, either. Heck,
I had not seen any at all until Mark shared his
with us. The blotter states that Central print‐
ed bonds, stock certificates, banknotes,
stamps, insurance policies, and checks. Of
those, Mark and I have seen only stock certifi‐
cates and bonds. It is unlikely that the firm
printed any banknotes, although it is certainly
possible that they printed some Depression
scrip. I asked Neil Shafer; he told me that he
has never seen any such issue.
So once again I solicit reports of items and
information about Central Banknote Compa‐
ny (and E. A. Wright and other small compa‐
nies). Thank you. fredschwan@yahoo.com.
Mark Tomasko addendum: I am pleased to
see Fred Schwan reviving a little interest in
Central Banknote Co. Fred R. (“Russ”) Esty Jr.
(the son of the founder of Central) was a
friend of mine, and I was fortunate to be able
to get some of the Central Banknote story
from him. The article, by the way, is “Central
Banknote Grew to Prominence with the
Estys” in the January 1998 Bank Note Report‐
er. Perhaps the greatest irony regarding Russ
Esty and Central Banknote is that while he
parted ways with the Wrights in 1940, to go
to Columbian Banknote Co., he had not seen
the last of the remains of Central. 32 years
later, as the president of U.S. Banknote Corp.
(formerly Security‐Columbian Banknote), he
presided over the purchase of Federated
Banknote (from De La Rue). Federated was
the successor to Central and E. A. Wright. So
what remained of the Central dies and rolls
were back under his dominion by 1972.
Here is one of the photographs to which
Fred Schwan refers in his text: the armored
car scene. It is quite amusing because it looks
as though they paid a policeman to pose by
the armored car, and the man on the right,
presumably the driver, looks as though he’s
wearing a Western Union or bellhop’s outfit
(his cap reads “Messenger”)!
Paper Money * Nov/Dec 2014 * Whole No. 294
419
BOLING CONT>
design has been carved, impressed, or etched
in mirror image to the desired product. Ink is
applied to the plate, being careful to insure
that ink penetrates the recessed image entire‐
ly, and excess ink is wiped away, leaving only
the ink in the recesses.
On its face, this seems impossible to do ‐
anyone who has tried to wipe ink from a sur‐
face is going to feel that all of the ink can nev‐
er be wiped up short of using some solvent.
But the printing plate is highly polished, and
with enough wiping, using a variety of wiping
materials, the ink outside the recesses can
indeed be removed (remembering that care
must be taken to not wipe the ink out of those
recesses).
Paper or other material is then laid on the
plate, great pressure is applied, and the ink in
the recesses is transferred to the medium up‐
on which the image is desired. Since the
grooves in the plate have depth, and are
mostly filled with ink, if the pressure is great
enough and the ink sticky enough, most of the
ink in the grooves will come away onto the
target medium (we will assume paper hence‐
forth). This means that, to the extent that the
grooves are emptied and the ink does not
smear as the paper is lifted from the plate, the
ink will sit on the surface of the paper in
ridges corresponding to the valleys that are
engraved into the plate. When dried, that ink
will be very visible, at magnification, sitting
up above the surface of the paper.
Figure 1 is a
photograph at
20x of a portion
of a portrait on
a 50 reichsmark
note of 1933
(early printing).
Figure 2 is the
same part of a
later printing of
that note. The
early printings
were intaglio; the
later printings were lithographed. Recall from
last issue that lithography leaves a virtually
flat image. These photographs were taken
with side lighting that shows clearly the
mounding of the ink above the paper on the
engraved note, and the lack of that “body” on
the lithographed note. There is a little bit of
texture on the litho piece, from the roughness
of the paper, but nothing like the high relief
shown by the ink on the note printed from an
engraved plate.
High quality engraving is characterized by
deep cutting of the printing plate, and high
relief on the finished product. Counterfeiters
who use intaglio plates generally do not have
the patience to create plates of that quality.
Intaglio counterfeits can be hard to distin‐
guish from direct‐plate (as distinguished
from offset) lithography, because direct‐plate
printing can transfer a lot of ink ‐ which can
look like shallow intaglio. That’s why it is al‐
ways desirable to have a known original note
in hand if one is examining a suspect note
that should be intaglio. Not only will you be
able to compare the relief presented by the
ink in the design, but you will also be able to
compare individual lines, distinguishing those
of the counterfeit that do not match those of
the original. But the first step of your exami‐
nation will be making a determination about
what printing technology was used for the
note you are inspecting.
Intaglio is not the only printing process
that leaves ink sitting above the surface of the
note. Two others are silkscreen and laser
printing.
Silk screen printing is a centuries‐old
technology from—where else? China. An im‐
age is created as a stencil that is laid on a fine
mesh fabric (the “silk” of the process) and ink
is pressed through the gaps in the stencil, and
through the mesh, onto the medium taking
the image. Alternatively, the mesh can be
treated so that it is impervious to the ink in
areas where printing is not desired, and the
stencil is superfluous. Silk screen printing of
counterfeits has been widely practiced in Asia
and elsewhere for at least seventy years. It is
most often used for the multicolored
underprints (tints) behind the main plates of
Fig. 1
Fig. 2
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420
bank notes. Typically, on legitimate notes,
such tints are lithographed, although they can
be printed by any available technology. But
silk screen is a slow process (even expensive
rotary presses for t‐shirts or sweat‐shirts run
at about 400‐500 pieces per hour, way too
slow for bank note printers), so silk screen is
not used for genuine notes.
Because of the volume of ink passed
through the mesh, it leaves a significant de‐
posit on the paper. Think of the rubbery feel‐
ing of the printed areas of a screened sweat
shirt ‐ if all that ink is on paper, and not em‐
bedded in the weave of a printed shirt, you
can imagine that at high magnification it will
be fairly prominent—which it is.
See figures 3‐5. These are of an Indonesian 400 rupiah note ‐ SCWPM #35. In figure 3 (a genu‐
ine note), all of the elements (three colors) are lithographed, and sit flat on the paper. Figures 4 and
5 are counterfeits from two different producers. The main plate (brown, the arcs at right and con‐
nected elements), are letterpress. The other two colors (the blue and orange tints) are silk
screened. Their inks sit up above the plane of the paper. Particularly in figure 5, you can see very
high edges on the thin blue lines, similar to the ink ridges we see on the edges of letterpress print‐
ing (such as the brown dots at the lower left of the same photo)—but much higher, with a lot more
ink than the letterpress plate.
See also figures 6‐8. These are of the Free French overprint on French Somaliland (Djibouti)
notes of WWII (SCWPM #12A and following). Figure 6 is of a genuine note ‐ it is letterpress, and the
ink ridges along the edges are barely visible. Figures 7 and 8 are photos of a fraudulent overprint
applied using the silkscreen process, specifically to bilk collectors. The photos are of the same note,
taken with the light striking the overprint from the left (figure 7) and from the top (figure 8). I don’t
know if the reproduction in the magazine will show it, but you can see the pattern of the fabric
through which the ink was applied ‐ vertical lines in figure 7, and horizontal lines in figure 8. You
can also see how much more ink has been applied—at 20x, it appears to be about to poke the view‐
er in the eye. Note that the faker did not get the dimensions quite right—the silkscreened image is
somewhat taller than the original.
And speaking of ink, I’ve used more than my allotment for this column, so we will have to take
up laser printing (and its digital cousin, inkjet) in the next edition.
Fig. 3 Fig. 4 Fig. 5
Fig. 6 Fig. 7 Fig. 8
Paper Money * Nov/Dec 2014 * Whole No. 294
421
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and third-party to the market. PMG’s team is prohibited from commercially
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As a result, PMG has become the most trusted name in currency
including the Bebee and Harry Bass Jr. collections. A
ZIMBABWE’S PLUNGE INTO
MONETARY MADNESS
by: Carlson R. Chambliss
Zimbabwe (formerly Southern Rhodesia) differed from many other African
colonies in that it had a sizeable European (very largely British) element in its population
whose roots went back to the year 1891 when the British under the leadership of Cecil
John Rhodes and his British South Africa Co. firmly planted a grip in this part of central
Africa. Six or seven decades later as increasingly many British, French, and Belgian
colonies in Africa were granted independence in the late 1950s and early 1960s, the
central African colonies of Northern and Southern Rhodesia together with Nyasaland
posed somewhat of a problem. Great Britain considered the possibility of an
independent Federation of Rhodesia and Nyasaland, but this would have paired
impoverished (and overwhelmingly African) Nyasaland with mineral-rich Northern
Rhodesia and fairly prosperous (but European-dominated) Southern Rhodesia. In 1964
both the two northern components of this unworkable federation became independent
as Malawi and Zambia, respectively. The majority of the European population in
Southern Rhodesia refused to accept a scheme that would have left them under
majority African control, and UDI (Unilateral Declaration of Independence) was declared
by them in November, 1965, with Ian Smith as Prime Minister. Soon (Southern)
Rhodesia was to declare itself a republic Great Britain regarded UDI as illegal, but the
white Rhodesians did have support from both South Africa and Portugal, which still
exercised control over Angola and Mozambique.
Despite a lack of diplomatic recognition and having to endure a variety of
international trade embargos and other sanctions Rhodesia continued to have a
relatively prosperous economy. Prior to UDI in 1965 the Reserve Bank of Rhodesia
issued 10/-, £1, and £5 notes that were printed by Bradbury, Wilkinson & Co. in the
United Kingdom. These depicted a portrait of Queen Elizabeth II, and their face designs
resembled the notes of the by then defunct Bank of Rhodesia and Nyasaland. After
UDI the Rhodesian government secured a contract with the venerable German printing
firm of Giesecke & Devrient to print a new series of notes. Quantities of notes were
printed by this firm, but the British put very strong pressure on the Germans to have
them not released. Apparently all of the German-printed notes for Rhodesia were
destroyed, and none reached either that country or the numismatic marketplace. After
that failure the Rhodesian government turned to local printers, and a lithographed issue
that closely resembled the British-printed notes of 1964 was issued in 1966. In 1970
these notes were replaced by $1, $2, $5, and $10 notes of the Republic of Rhodesia
with one dollar equal to ten shillings. The Queen’s portrait that appeared on the 1964
and 1966 issues, of course, was replaced by the new coat of arms of this regime.
The decade of 1970-80 proved to be increasingly difficult for government of Ian
Smith in Rhodesia, but oddly enough, it was able to maintain the integrity of its
currency. Between 1964 and 1978 the cost of living index in Rhodesia increased only
Paper Money * Nov/Dec 2014 * Whole No. 294
422
by a factor of very nearly 2.0 despite fairly stringent controls on its international trade.
This corresponds to an inflation rate of only 5.1% per annum, a real achievement for the
regime considering the increasing war expenses that the nation was forced to make.
The resistance mounted by many Africans to the Rhodesian regime became
increasingly effective, but this was split most notably between the Mashona-dominated
ZANU movement of Robert Mugabe and the Matabele-dominated ZAPU movement of
Joshua Nkomo. The eventual peace agreement that led to full and internationally
recognized independence for Zimbabwe left Robert Mugabe and his faction in full
control. Neither the Europeans under Ian Smith nor the Matabele under Joshua Nkomo
were very happy about this arrangement, and as things turned out, they had good
reason for not being pleased with this outcome.
Given the former hostility between Ian Smith and Robert Mugabe, it is amazing
that the monetary transition went as smoothly as proved to be the case. Dr. D. C.
Krogh, a European, continued as governor of the Reserve Bank of Zimbabwe which
took over from the former Reserve Bank of Rhodesia that Dr. Krogh had also headed.
The earlier notes of Rhodesia featured a watermark of Cecil John Rhodes, but by 1979
these notes had a watermark of a Zimbabwe bird, an artefact that is associated with the
Great Zimbabwe ruins, the large stone fortification and urban center that dates back
several centuries and has become symbolic of the nation. This watermark was also
continued on the new Zimbabwe notes.
The first issue of notes of Zimbabwe were of the $2, $5, $10, and $20
denominations, and they were exchanged at par with the previous Rhodesian dollar
notes. Both series were domiciled to Salisbury, but in 1982 the name of the capital city
was changed to Harare. In 1983 D. C. Krogh was replaced by K. Moyana, the first
African to hold the job of governor of the Reserve Bank. Moyana was replaced by L. L.
Tsumba in 1994, and all three of these individuals signed these notes between 1980
and 1994. The notes themselves were well engraved by Thomas De La Rue, and all
feature the Chiremba balancing rock formation located near Harare that has been used
as a symbol of the Reserve Bank and has appeared on many of its notes.
The Zimbabwe note issues of 1980-94 give the appearance of great stability, but
actually things were a bit less stable than appearances might suggest. Initially the
Zimbabwe dollar was pegged at the value of the Rhodesian dollar or $1.44 in U. S.
currency, but by 1994 its value had fallen to about 14 cents in US money. By this time
there was also a parallel market rate that offered about nine Zimbabwe dollars to the US
dollar. Nonetheless both the coins and the notes remained unchanged for about 15
years. By 1995, however, a new series of banknotes was introduced beginning with
notes for $50 and $100. In 1997 the original notes of 1980-94 were replaced by new
Paper Money * Nov/Dec 2014 * Whole No. 294
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and smaller-sized notes for $5, $10, and $20. All of these were still printed by TDLR. I
was in Zimbabwe in 1999 to view a total solar eclipse, and one thing that impressed me
was how fresh all of the $100 notes were, thus indicating that they had been very
recently printed. By 1999 the exchange was officially $55 Z per U. S. dollar, but most
transactions were conducted at a parallel rate of about $100 Z per U. S. dollar. Higher
denomination notes did not appear until 2001 and 2003 when notes for $500 and
$1000, respectively, were issued for the first time. Collectors will find it very easy to
obtain all of the engraved notes that were issued between 1995 and 2004.
Although the relative prosperity of Zimbabwe (by African standards) continued for
much of the 1980s and 1990s, the ruthless character of the Mugabe regime manifested
itself in a number of ways. During 1982-85 there were a series of brutal repressions of
the Matabele people in the southern part of the country. By the 1990s increasingly
strong pressure was being put on the remaining European population to give up their
properties and turn them over to Mugabe’s government. Most Europeans were large-
scale farmers, and the economy of the nation was very much dependent on their output.
By transferring these efficient large-scale farms into the hands of cronies of Robert
Mugabe, most of whom had little training in commercial agriculture, his government was
courting economic disaster, and indeed that is what did happen.
By the first couple of years into the new century Zimbabwe was facing very
serious inflation, and it was rapidly losing friends, at least among western countries.
The last note engraved by TDLR was a $500 note signed by the notorious Dr. Gideon
Gono, who took over as governor of the Reserve Bank from L. L. Tsumba late in 2003.
Gideon Gono’s “doctoral degree” is from a diploma mill, but over the next few years he
proved himself adept at laundering huge sums of money and ruining the nation’s
currency. Thomas de la Rue refused to print any more banknotes for Zimbabwe after
2004, but during the next five years Zimbabwe managed to produce one of the most
extreme hyperinflations ever recorded.
The so-called “first dollar” continued to be used up to August 1, 2006, but
between 2003 and 2006 the Zimbabwean Reserve Bank experimented with two
different types of currency items. The first of these were the so-called travellers
cheques. These were
issued in denominations
of $1K, $5K, $10K, $20K,
$50K, and $100K dollars.
(Note: to avoid writing too
many zeros in this article,
I shall follow the common
practice of using K =
thousand, M = million, B =
billion, and T = trillion in
some instances.) Most of
the travellers cheques that
I have seen appear to have been used in September or October of 2003, when the
official exchange rate for the Zimbabwe dollar was about $6000 Z per $1 USA. Each
denomination is lithographed in its own distinctive color, and there are no inscriptions on
the backs although a wavy pattern is found on all of them. All bear the signature of C.
Paper Money * Nov/Dec 2014 * Whole No. 294
424
Chikaura as acting governor of the Reserve Bank. When issued a cheque would be
signed by the payee, and then that person would countersign the cheque when it was
cashed. I have not seen any blank cheques of this type.
The WPMC (World Paper Money Catalog) lists these items as nos. 15-20, but its
listings are confused. Values are quoted for both VF and CU grades, but I am not clear
as to just what these terms mean for these cheques. A problem with them is that they
could be used only once, and the items on the market all appear to be in attractive and
unfolded condition. Cheques with heavy folds would certainly be worth less, but these
items did not circulate from hand to hand, and so they did not pick up the sort of wear
and tear that might be expected for circulated banknotes. All cheques that I have seen
feature the computer coded numbers, 1101 – 0202727 – 701, at their bottoms. These
cryptic numbers refer to an account number of the Reserve Bank. The serial number of
an individual check appears at its left bottom, and sometimes the denomination of the
cheque is spelled out (in numerical code) at its right bottom
I have encountered offerings of these cheques on eBay and other sources, and
their prices seem to be much less than what has been listed in the WPMC. A complete
set of six should cost about $20 to $25. For a while it seems as though the $5000
cheques were scarcer than the others, but a new supply of these seems to have
reached the market. A typical cheque will bear two signatures of the bearer, a teller
stamp with the location and date that the cheque was cashed, and an inward clearing
stamp of the Reserve Bank in Harare or Bulawayo that is dated several days later. A
wide variety of endorsements is possible, and one could collect these items in that
fashion, but their major problem is that they could be used only once. Apparently they
were largely out of use by the end of 2003.
There is a second series of emergency bearer cheques that are also in the
WPMC that are listed by them as nos. 13-14 and 24-27. These were cheques issued in
2003-04 by the private Cargill Cotton firm and signed by two of their officers. The
denominations range from $5K to $100K. These items appear to be quite scarce, as I
hardly ever see them for sale. It should be noted, however, that they are private issues
and not issues of the Zimbabwe government.
During 2004, 2005, and the earlier part of 2006 most of the currency in circulation
consisted of what were termed “Bearer Cheques” by the Reserve Bank of Zimbabwe.
The denominations were $5K,
$10K, $20K, $50K, and
$100K, although the last two
values were not issued until
2006. The two high values
feature a lithographed image
of Victoria Falls on their
backs, while the three lower
values feature only colored
frames. All of these items
feature a watermark of a
Zimbabwe bird together with the letters RBZ. Although they were referred to as bearer
cheques, they are in effect banknotes that required no endorsements for their use. All
bear the cryptic number 02022909 which refers to an account number of the Reserve
Paper Money * Nov/Dec 2014 * Whole No. 294
425
Bank. All of these items include an expiry date that was as late as December 31, 2006,
or five months after the first of the so-called “second dollar” notes were issued. By then,
however, inflation would have rendered these items near worthless in terms of their
buying power.
By far the most available of these items are those that bear the signature of
Gideon Gono and identify him as Dr. G. Gono, Governor. There are also varieties that
do not have his name in print or that were signed by C. Chikaura as acting governor.
The last varieties of the $20K, $50K, and $100K notes of this type are by far the most
available, and they should cost no more than a couple of dollars each. The $5000 and
$10,000 notes are definitely scarcer, and the earlier varieties with Chikaura’s signature
seem to be quite uncommon. Something like 20 different varieties exist for all five of the
denominations with from two to six of these per value, but putting together a complete
collection of these “bearer cheques” would be quite a challenge.
On August 1, 2006 Gideon Gono put into use the so-called “second dollar” in an
action that he termed Operation Sunrise. The conversion rate was one new dollar for
1000 of the old, but by this point the hyperinflation was beginning to go totally out of
control. The notes in this new currency were also referred to as bearer cheques and all
but the last four values feature the account number 02022909. At the time of the
conversion the “official” exchange rate was 250 new dollars to the US dollar, while the
“parallel” market rate was about 600 to the dollar. Apparently some of the notes had
been printed in less inflated times, since values for 1, 5, 10, and 50 cents along with $1,
$5, and $10 notes were included. I have no idea as to why the fractional notes were
issued, since their exchange values would have only been small fractions of a U. S.
cent. Some coins may still have been around, but their values in terms of their metal
content (in copper and nickel) would have been far higher.
These notes were all printed by Fidelity Printers in Zimbabwe on paper that was
supplied by the German firm of Giesecke & Devrient. All bear a watermark of a
Zimbabwe bird, and most also have the initials RBZ in watermark form. A few,
however, appear to have been intended for $500 notes, while one value (for $750,000)
includes a holographic strip and the watermark for a $1000 note. Although only
lithographed, all of these notes include a security strip, and overall the quality of
production was fairly high.
The second dollar suffered from extreme inflation throughout its existence. It
was abolished just two years after it was introduced, but at a conversion rate of ten
billion to one of the new “third dollars.” This would be equivalent to an inflation rate of
Paper Money * Nov/Dec 2014 * Whole No. 294
426
ten million percent per annum. This is roughly the same as rates of 160% per month or
25% per week. These values sound “tamer,” but in fact they are all just about the same.
A total of 32 different notes were issued in the “second dollar” series, and the
entire set is available in new condition for about $100 or so. Some values are more
common than others, but none are scarce. All notes were numbered in blocks of ten
million notes. Some values (including the four fractional values) seem to have only
been printed in the AA block, but I have noted serial number blocks as high as AW and
BB for the $100,000 and $200,000 notes, respectively.
There are two rare varieties of these notes, and one should be on the lookout for
them. The $10K and $100K notes exist with their values inscribed 10000 and 100000,
respectively. These occur only in the AA serial number blocks, and they were soon
changed to 10 000 and 100 000 (i.e., with a blank space before the last three zeros).
The notes without these spaces are far rarer and are worth very large premiums.
The notes of this set were issued over a period of just under two years, from
August 1, 2006 to July 1, 2008. The range in their face values, however, was huge –
amounting to a total of 1013. Probably the fractional denominations were printed
well before they were actually issued and at a time when it was thought that the new
dollar would have a much higher value than proved to be the case. Values as high as
$10,000 were issued from the beginning, and within a year these notes had increased
to $200,000. The issue of notes for $250K, $500K, and $750K seems a bit peculiar
since notes for $1M, $5M, and $10M were soon at hand. As things turned out, the note
for $750,000 had the most elaborate security features of any note in this series. The
four highest values of this series – for $5, $25, $50, and $100 billion dollars – were
termed “special agro-cheques,” and their backs depicted grain elevators, a scene not
used up to then on any other notes of Zimbabwe. Although they were supposed to be
high-value notes with real buying power, when the so-called “third dollar” was
introduced one month after the last of these at a conversion factor of ten billion to one,
the $100B agro-cheque was worth only $10 of the new dollars or about four cents in
U. S. currency.
The so-called “third dollar” was introduced on August 1, 2008. The seven lowest
values of this set (of 27 values) are dated 2007 and were apparently printed previously,
most likely by Giesecke & Devrient. Presumably they were prepared for a time when
the dollar would be worth more, but when introduced the exchange was something like
$250 Z to $1 U. S. A $10,000 note was soon added, but this was the last note of this
series to include watermarks or metallic security strips. The Chiremba balancing rocks
are again featured on the faces of all these notes, while their backs depict scenes that
had previously been used on many Zimbabwean notes.
The third dollar proved to be a very short-lived currency, since it lasted only from
August 1, 2008 to February 2, 2009. The conversion to the fourth dollar was at the rate
of one trillion to one. The entire set of 27 “third dollar” values is readily obtainable at a
price of $75 or so. These notes also used seven-digit serial number blocks preceded by
two-letter designations. Most of the blocks that I have seen are either AA, AB, or AC,
so it seems that these notes were produced in substantially smaller quantities than was
the case with some values of the second dollar notes. On the other hand, this series
was only in use for about six months as compared with some two years for the previous
series.
Paper Money * Nov/Dec 2014 * Whole No. 294
427
An inflation rate of one trillion to one over a period of only six months totally
boggles the mind. This is
equivalent to a rate of
10,000% per month or
190% per week.
Especially popular with
collectors are the last
four notes of this series
that have values of 10,
20, 50, and 100 trillion
dollars. Collectors also
like the fact that the zeros
(all 14 of them for the
highest value) are written
out. Zimbabwe’s only serious competition in the hyperinflation department was Hungary
in 1946 when equally ludicrous notes were produced, although Yugoslavia in the early
1990s did offer both of these countries some competition. The highest value actually
issued by Hungary (WPMC no. 136) was for 1020 pengo which was written in
Magyar as szaz (= hundred) millio (= million) billio (= trillion) pengo. An even higher
face-value note was printed, but it was never issued. In terms of the original Zimbabwe
dollars, however, the $100T note had a face value of 1027 dollars. For local people
living in Zimbabwe during this period a very important factor was how much money
were they allowed to withdraw at any given time, which was usually quoted as the
amount of cash permitted per week. Usually this was only enough to provide for the
most basic of necessities.
The so-called fourth dollar was introduced on February 2, 2009, but it only lasted
for a little more than
two months until April
12, 2009. The
conversion factor
was one trillion “third
dollars” to one of the
new units. Thus the
four highest of the
last series passed for
$10, $20, $50, and
$100 in the new
currency, and both
circulated together. There were seven denominations in the fourth dollar set, all of
which are dated 2009. In addition to notes for $10, $20, $50, and $100, there were also
notes for $1, $5, and $500. This set of seven notes is easily obtainable and can be had
in CU condition for about $15 or $20. Oddly enough some sort of stability took over and
the exchange rate settled at about $300 Z per $1 US. But the Zimbabwean people
were getting sick and tired of the torrents of worthless money, and it seems that the
government was running out of paper on which to print new notes.
Paper Money * Nov/Dec 2014 * Whole No. 294
428
So the ultimate happened. The Zimbabwe government fully legalized trading in
foreign currency, and it ceased to print Zimbabwe dollars altogether. Since April, 2009
only foreign currency has circulated in Zimbabwe, and no Zimbabwe notes of any
vintage are acceptable. The currencies most widely used are the U. S. dollar and the
South African rand. The Botswana pula, the currency of the diamond-rich nation to the
immediate south of Zimbabwe, is also used in addition to euros, British pounds, and a
few other convertible currencies.
One of the important functions of a reserve bank is to remove and destroy old
and heavily worn money from circulation. Today the Reserve Bank of Zimbabwe hardly
functions at all, and since Zimbabwe and the United States are barely on speaking
terms with each other, there seems to be no arrangement with the Federal Reserve
System for removing and replacing heavily circulated notes. As a result, much of the U.
S. currency in circulation in Zimbabwe is in tatters. The situation becomes even more
complex, since most of the coins in circulation are South African rather than American.
Most of the economic history of Zimbabwe for the past fifteen years or so has
been a disaster. It has gone from a relatively prosperous nation by African standards to
becoming a true basket case. In 1994 the per capita income of Zimbabwe was about
$1200, and this datum can be compared with that of such nations as Ghana ($900),
Senegal ($1100), or with far poorer Malawi ($400). Today the estimated per capita
income of Zimbabwe is $500, which puts it down in the same league as Burundi ($600)
or the Congo Democratic Republic ($400). Even Malawi with an estimated per capita
income of $900 now stands well above Zimbabwe. Over these years Ghana has made
real progress, and its per capita income is about $3100, while Senegal stands at $1900
in this regard. During 2008 Zimbabwe endured an extremely corrupt and brutal election
that retained Robert Mugabe and his ZANU-PF (Zimbabwe African National Union –
Patriotic Front) in power. Again in 2013 he was returned to power in another disputed
election. Today Mugabe is 90 years old and the ZANU-PF is split into several factions,
but no one wants to discuss the succession, since many persons fear the Zimbabwe will
descend further into chaos when he goes. This is a sad outcome for a nation that once
showed much promise, but at least it has resulted in many interesting monetary issues
while at the same time demonstrating to all of us how not to run a reserve bank.
References:
The internet Wikipedia website for the Zimbabwe dollar provides an excellent
survey of the history of this currency unit.
The Zimbabwe section of the current World Paper Money Catalog provides a
fairly reliable listing of the issues of this country.
The World Almanac provides current data on the per capita incomes of the
nations of the world. This book is published annually, and another useful reference
work is “Africa South of the Sahara” that was published annually by Europa
Publications, Ltd., in London.
Paper Money * Nov/Dec 2014 * Whole No. 294
429
An Update on Unlisted Sterling, Alabama Notes
by Bill Gunther
In the November/December 2011 issue of Paper Money, I reported on the piece of scrip
shown below. Despite the missing piece on the left side of the note, I was able to conclude that
the note (25 cents) was in fact from a town named “Sterling” in Cherokee County, Alabama.1
(Figure 1) The community of Sterling was only a few miles to the west of the Coosa River and
the note and location were unlisted in any reference work. Further research revealed that the
signature on the note was that of a “C. M. Lay,” who captained steamboats on the Coosa River
in 1862‐1863. In that article it was further pointed out that C. M. Lay’s son, William,
accompanied him on many trips and became enamored with the potential power the river
contained for the development of hydroelectric power. He used this knowledge to eventually
found the Alabama Power Company in 1906.
Figure 1 – This Rosene2 Unlisted Note
appears to be from Sterling, Alabama
Although a vignette of a locomotive with a load of cotton appears on the note, it would
seem likely that this scrip was used by C.M Lay on his steamboat trips along the Coosa River
between Rome, Georgia and Wetumpka, Alabama. After searching a number of archives of
currency auction houses, I concluded that this note was likely unique since “no other notes of
this issuer have surfaced…”
Recently a second note (50 cents) has surfaced and it is largely complete, providing new
information that was missing on the first note. (Figure 2) Although this note is unsigned and
unnumbered (a “remainder”), we have previously established the fact that these notes were
used by C. M. Lay, a steamboat captain. What is most interesting with this note is that the
location is now revealed as “Near Sterling”, not Sterling! I know of no other Alabama note that
whose place of issue refers to “near” another place. An interesting question is where should
this note be cataloged geographically? Sterling or “Near Sterling”?
Paper Money * Nov/Dec 2014 * Whole No. 294
430
Figure 2 – This Rosene Unlisted
Note clearly states it is from
“Near Sterling, Ala.”
The reference to “near” Sterling would be consistent with C. M. Lay operating his
steamboat business along the Coosa River while living a few miles away in the community of
Sterling. Both notes were printed by Mason’s Job Office in Rome, Georgia. Rome, less than 30
miles from Sterling, was also on the Coosa River and it is likely that C. M. Lay was there often
with his steamboat.
Footnotes
1Bill Gunther, “Who Were They? Tracing Names on Alabama Notes,” Paper Money,
November/December 2011, pp442‐443
2Rosene refers to Walter Rosene, Jr.’s Alabama Obsolete Notes and Scrip (Society of Paper
Money Collectors, 1984.
L_tt_r to th_ _^itor
Dear Sir:
I do appreciate the very fine review of my new book on Large-Size Notes that
was written by Gary J. Dobbins and appeared in the Sep/Oct issue of Paper Money. There
are two points, however, that do need clarification. This book is entirely distinct from
that Seventh Edition of the Comprehensive Catalog that was published by BNR Press in 2006.
That book - by Gene Hessler and myself - is 672 pages long and covers numerous topics as
well such as the history of paper money, Small-Size Notes, Fractional Currency, MPCs,
Test and Specimen Notes, etc. Copies of this book are still available from me at my
address (P. O. Box 804, Kutztown, PA 19530). Published early in 2006, it obviously
contains no data later than 2005.
A second point that I need to mention is that most notes are not priced in VG, F, and
VF. This is only done in a few exceptional cases such as Demand Notes where "valuations"
of notes in XF or higher would be meaningless. In general, the valuations are in F-15, XF-
40, and CU-63. There are many thousands of auction realizations that are quoted, and I do
comment on a few of these where I feel that the realizations were dangerously high.
I shall be most interested to learn of any additional comments on this book from
any interested readers. Carlson R. Chambliss.
Paper Money * Nov/Dec 2014 * Whole No. 294
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Peter A. Treglia
Matthew W. Quinn
John M. Pack
Brad Ciociola
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Fr. 167b. 1863 $100 Legal Tender Note.
PCGS Very Fine 25.
Price Realized: $352,500
Fr. 193a. July 15, 1864 $100 Compound
Interest Treasury Note.
PCGS Very Fine 35 Apparent. Restorations.
Price Realized: $282,000
Fr. 1191. 1882 $50 Gold Certi cate.
PCGS Extremely Fine 40.
Price Realized: $411,250
Fr. 2220-J. 1928 $5000 Federal Reserve Note.
Kansas City. PCGS Extremely Fine 40.
Price Realized: $141,000
Fr. 324c. 1878 $50 Silver Certi cate.
PCGS Very Good 10 Apparent. Restorations.
Price Realized: $329,000
Fr. 1203. 1882 $100 Gold Certi cate.
PCGS Fine 15.
Price Realized: $470,000
George McGovern’s $1000 Promissory Note
by Loren Gatch
While the word “flip-flop” has been a part of America’s political lexicon since the early
20th century, as a piece of political invective the term has become widespread only in the last
generation. As with most political speech, the more it has been used the less it means. Nowadays,
almost any apparent inconsistency—or even the intellectually honest act of changing one’s
mind—gets a public figure in hot water. Back in 1972, however, “flip-flop” did most definitely
describe the behavior of the Democratic Party’s presidential candidate, George McGovern,
towards his running mate, Thomas Eagleton. The fiasco of McGovern’s embrace and then
disavowal of his vice-presidential choice not only created the “Eighteen-Day Running Mate” but
gave rise to a widely-available example of political scrip, George McGovern’s $1000 Promissory
Note.
The 1972 presidential campaign of George Stanley McGovern (1922-2012) occurred at
an important juncture of recent American political history. The Republican Party’s electoral
strategy had only just begun to peel away important parts of the Democrats’ New Deal coalition,
especially Southerners hostile to the Democrats’ support for civil rights. For their part, the
Democrats’ outreach to minority voters as well as to the antiwar movement pulled the party to
the left in a way that loosened its ties to working-class whites. Indeed, it was Vice President
Spiro Agnew’s slashing rhetorical style that defined an increasingly common Republican
campaign trope: Democrats were liberal elitists who had lost touch with the values and interests
of what Nixon called the “Silent Majority.”
If anybody could bring the anti-war left into the Democratic Party, it was George
McGovern. The senator from South Dakota was a decorated bomber pilot during the Second
World War and possessed a reputation for great personal integrity. At first a long shot in the
1972 Democratic primary season, McGovern exploited his grassroots organizational strength
among the anti-war movement, civil libertarians, and minorities to gain ground against party
stalwarts like Edmund Muskie and Hubert Humphrey. A weak showing by Muskie in the New
Hampshire primary in February was followed by McGovern’s victories over Humphrey in
Wisconsin and California. The assassination attempt on George Wallace removed yet another
challenger, and by June McGovern emerged as the front runner and presumptive nominee at the
Democratic convention in Miami Beach in early July.
The Democratic Party establishment did not welcome McGovern’s surge. Organized
labor, in the form of George Meany’s AFL-CIO, did not endorse him. In order to both bolster his
appeal to white ethnic voters and reassure his party’s establishment, McGovern tried repeatedly
to get Teddy Kennedy for the vice presidential slot. Polling suggested that a McGovern-Kennedy
ticket had the best shot at beating Nixon. However, smarting from the Chappaquiddick scandal,
Kennedy was uninterested, and his own presidential ambitions probably disinclined him from
lending his marquee name to the ticket. A Kennedy playing second fiddle was simply
improbable. As Hunter S. Thompson put it, “it would be like the Jets trading Joe Namath to the
Dallas Cowboys as a sub for Roger Staubach.”
The convention proceedings in Miami Beach stretched on in a way that rushed the
selection of McGovern’s vice-presidential candidate. When other alternatives, like Boston’s
mayor Kevin White, proved unacceptable, the McGovern forces finally turned to Thomas
Francis Eagleton (1929-2007), the junior senator from Missouri. While not as well-known as
Paper Money * Nov/Dec 2014 * Whole No. 294
432
Kennedy, Eagleton’s Catholicism and his links to organized labor promised to balance the ticket
in a similar way. With hardly any vetting of his background, Eagleton was offered a spot on the
ticket on July 13 in a phone conversation with McGovern that lasted barely one minute.
It was only after accepting the nomination that Eagleton confirmed rumors that since
1960 he had been hospitalized three times for depression, and twice undergone
electroconvulsive—popularly called “electroshock”—therapy. Not only had Eagleton
dissimulated in failing to tell the McGovern campaign about these episodes, he continued to
resist explaining his medical record in any detail. Eagleton’s stance put the McGovern campaign
in a terrible bind. Forcing Eagleton off the ticket would look callous, and destroy McGovern’s
image as a different, and more principled, type of politician. Yet keeping Eagleton raised
enormous doubts about the competence of a man who might be second in line to assume the
presidency, as well as about McGovern’s own sense of judgment.
In a joint press conference with McGovern on July 25, Eagleton first publicly confirmed
his past hospitalizations, and McGovern famously declared that “I am 1,000 percent for Tom
Eagleton and have no intention of dropping him from the ticket.” The statement was, according
to Theodore H. White, “possibly the most damaging faux pas ever made by a Presidential
candidate.”
The pushback against McGovern’s decision was intense. The liberal press was against
Eagleton; donations to the Democratic Party dried up; and McGovern’s own campaign workers
were dealt a demoralizing blow. Manufacturers even ceased the production of McGovern-
Thomas Eagleton (left) and George McGovern (right) at the 1972 Democratic convention
Paper Money * Nov/Dec 2014 * Whole No. 294
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Eagleton campaign posters, bumper stickers, and buttons. Those Democrats pushing for
Eagleton’s removal from the ticket contended that it was not his history of mental illness, but
how he had misled McGovern that disqualified him—the problem was Eagleton’s character, not
his sanity. The Nixon White House was already well-informed about Eagleton’s medical past,
and if he were to remain a candidate the campaign attacks that fall would be predictable.
Facing this pressure, the McGovern campaign sought indirectly to get Eagleton to leave
the ticket for the good of the party’s chances in November. Eagleton resisted, and even
contended that the controversy would make him a stronger candidate. Yet a chasm of distrust had
opened up between the staffs of the two candidates, and by July 31 Eagleton bowed to the
inevitable and withdrew his name. It remained unclear whether McGovern was hurt more by the
way he pushed Eagleton out than by the
liability Eagleton might have represented had
he stayed on the ticket. After the fiasco, a
second, ignominious round of candidate
selection produced Sargent Shriver as
Eagleton’s replacement. In any case, public
support for McGovern henceforth collapsed.
McGovern’s unfortunate use of the
term “1,000 percent” regarding Eagleton also
resonated with one of his earlier campaign
proposals to reform the country’s welfare
system. McGovern had proposed to give each
American a $1,000 payment (a
“demogrant”); an idea that, linked with a
broader tax reform, actually had a certain
academic pedigree and was a forerunner of what later emerged as the Earned Income Tax Credit.
On its face, though, the notion was easy to caricature; Humphrey ridiculed it during the
California primary, while Nixon’s campaign director Clark MacGregor called it a “$1,000-per-
person giveaway program that would split America permanently into a welfare class and a
working class.” While McGovern had abandoned the proposal by the time of the party
convention, the humorist Art Buchwald noted the parallel suggested by the same number. In a
column in early August, Buchwald imagined McGovern arguing, “if I’m going to give everyone
in this country $1,000, then my Vice President should get 1,000 percent support from me.”
A short time later, during the Republican convention (also in Miami Beach), Scripps-
Howard newspapers noted how “funny money—fake $1,000 bills bearing the face of Democratic
presidential nominee George S. McGovern—floods convention hotels.” Dispensed over souvenir
store counters at the convention, the $1,000 bills sport a red profile of McGovern, facing to his
left, framed by blue scrollwork. The text, also in red, reads “Here’s the $1,000 McGovern
promised everyone”, “Legal tender to anyone stupid enough to take it at face value”, and with
the promise that “On Nov. 7, 1972 this bill will self-destruct.” The reverse (of which there seem
to be two varieties, one printed brown, and another green) is labeled a “promissory note” with a
portrait of an agitated and perspiring Eagleton mopping his brow. “McGovern says he’s behind
me 1,000 percent”, “but…he didn’t say how far behind!” This side is described as “Payable Nov.
8, 1972, at Credibility Gap, U.S.A.”
Thomas Eagleton, at the news conference
announcing his departure from the race.
Paper Money * Nov/Dec 2014 * Whole No. 294
434
Crudely printed on the cheapest paper, the parody notes deftly juxtaposed the two lines of
attack directed at McGovern’s candidacy: that his policy proposals were too radical for the
nation and that his treatment of Eagleton reflected poorly on McGovern’s character and
judgment. Reproduced in facsimile in newspapers across the country, the notes themselves
quickly showed up at political events as far away as San Antonio, Texas.
The Democrats never recovered from the Eagleton debacle, and the McGovern-Shriver
ticket went on to lose in November 1972 by the widest margin of the popular vote in the history
of presidential elections. Spiro Agnew resigned the Vice Presidency hardly a year later, and
Nixon himself was brought down by the Watergate scandal by August 1974. After the Eagleton
experience, vice presidential nominees were never again selected so casually and without proper
background checks.
REFERENCES
El Paso [TX] Herald-Post, August 21, 1972.
Facts on File, Presidential Election of 1972 (NY: Facts on File, Inc. 1973).
Glasser, Joshua, The Eighteen-Day Running Mate (Yale University Press 2012).
San Antonio [TX] Express-News, September 3, 1972.
Sarasota [FL] Herald-Tribune, August 6, 1972.
The New York Times, July 23, 2012.
The [Roselle, IL] Herald, September 1, 1972.
The Troy [NY] Record, August 23, 1972.
Thompson, Hunter S. Fear and Loathing on the Campaign Trail ’72 [1973] (Grand Central
Publishing 2006).
White, Theodore, The Making of the President 1972 (NY: Atheneum Publishers 1973).
Paper Money * Nov/Dec 2014 * Whole No. 294
435
Bourse Information: Patricia Foley
(414) 698-6498 • foleylawoffice@gmail.com
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Series of 1934 $5 silver certificate mules were overprinted with serial numbers
from every serial block from D-A to P-A except for I-A and J-A.
Coincidental timing caused the absence of mules from those two blocks: None
could be printed between May 1940 and June 1945, when the application of those entire
blocks occurred; specifically, the I-A block during 1941, and the J-A block during 1941-
42.
Five-dollar silver certificate mules first appeared in January 1938, when the Bureau
of Engraving and Printing began etching macro plate serials instead of micro serials to all
finished plates.
They made the change in response to a request of the U.S. Secret Service, who
wanted it made easier to read the plate serials when analyzing for counterfeit notes. The
Bureau certified the first $5 Series of 1934A silver certificate macro faces on January 7,
and followed with the first $5 macro backs on the 11th.
The 1934A faces initially went to press on January 10, and were mated with micro
backs to create the first $5 silver certificate mules: notes with macro faces and micro
backs.
The macro backs went to press two months later, on March 16, and were mated
with 1934 micro faces, and also 1934A faces, which created another mule variety: notes
with micro faces and macro backs.
The Bureau eventually phased out all 1934 micro faces from service by September
16, 1938, leaving only 1934A macro face-micro back mules as possible $5 silver
certificate mules. These were produced in abundance throughout the E-A and F-A serial
blocks, but their appearance began to dwindle in the G-A block.
By August 1939, the Bureau had only three $5 micro back plates still in service:
902, 905 and 938. They removed the last plate, micro back 905, from use on February 5,
1940. Supplies of printed 905 back sheets would last a few more months until exhausted
just after numbering of the H-A block began in May 1940.
The Bureau was printing large quantities of silver certificates in the early-1940s
and completed the H-A block early in 1941. They quickly finished the I-A block before the
end of 1941, and then the J-A block before 1943 arrived.
Production then slowed drastically during the middle of World War II in 1943 and
1944--the only $5 silver certificates printed during those two years were 12 million K-A
block North African yellow-seals.
Small Notes
by Jamie Yakes
No $5 Silver Certificate I-A & J-A Block
Mules
Paper Money * Nov/Dec 2014 * Whole No. 294
436
The Bureau increased $5 silver certificate production in 1945, when the Treasury
decided to monetize stockpiled silver bullion not previously held as backing for silver
certificates.
Production of $5 mules also resumed that summer, when on June 23, late-finished
micro back plate 637 went to press for the first time. By then, the J-A serial block was a
distant memory. The first waves of $5 silver certificate 637 mule sheets received higher K-
A block serials.
Back 637 remained in use until 1949. Sheets printed from it and another late-use
plate, micro back 629 used from 1947-48, provided feedstock for the $5 Series of 1934A,
1934B, and 1934C silver certificate mules numbered with K-A to P-A block serial
numbers.
Acknowledgments:
The Professional Currency Dealers Association and the Society of Paper Money
Collectors supported this research.
Sources Used:
United States Treasury. Bureau of Engraving and Printing. Ledgers Pertaining to Plates,
Rolls and Dies, 1870s-1960s. Volume 10. Record Group 318: Records of the Bureau of
Engraving and Printing. National Archives and Records Administration, College Park,
Maryland.
Figure 1: $5 silver certificate
H-A block mules--the last
mules possible before the I-A
and J-A blocks were
numbered--are a small-size
rarity.
Paper Money * Nov/Dec 2014 * Whole No. 294
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The Obsolete Corner
Wow…What a Sheet!
by Robert Gill
Each time I write an article for Paper Money, I encourage readers to contact me with comments so
I can learn more about my subject. And generally I get a good response from a few of our readers.
When this years July/August issue went to our members, the results were the same. At that time my
family and I were enjoying a week of vacation in the Caribbean. But as I always do when away from
home, I had my laptop with me so that I could daily check my email. I received some nice comments
from Guy Kraus, who wrote the book on Mississippi Obsoletes. And since that time, we have had
several phone conversations about our Mississippi sheets. I also had some nice communication with
David Sundman, owner of a large coin company located in New Hampshire. But one other contact
made it possible for me to add another sheet, and a very interesting sheet I might add, to my
collection.
One of our members, Pat Mullen, contacted me about an obsolete sheet that he had. Pat operates
Mullen Coins, which is in Grand Rapids, Michigan. In his email he said that he had a very interesting,
and what he thought to be rare, scrip sheet that he had not been able to find any information on.
Obviously, my curiosity immediately kicked in, and I went to his website. And there he had a sheet,
of what I think is advertising notes, on "Dwight Merriman, Bookseller & Stationer". As I'm fairly
learned in Michigan Obsoletes, I quickly recognized that I knew nothing of this issuer. And even
more so my interest was peaked because of its high denomination notes consisting of seven $100 bills.
I quickly contacted him and asked that the sheet be held until I got back home in a few days.
When I returned home I called Pat to talk about and make arrangements to get possession of the
sheet. He said he had tried to research the sheet, but to no avail. And since that time, I've had the
same results.
Pat had shown the sheet to an interested dealer at a show. But luckily for me, that person was not
ready to pay the asking price. During their conversation, it was mentioned that the sheet could very
well be worth more if cut into single notes, as Michigan collectors would probably love to put a
"single" of an unreported merchant in their collection. Obviously, cutting is a "no-no" to an avid sheet
collector like me!
After receiving the sheet, I began to relentlessly research the issuer. Dr. Wallace Lee, in his book
"Michigan Obsolete Bank & Scrip Notes", makes no mention of this merchant. And Harold Bowen
does not write about Michigan scrip in his book. I have searched the internet looking for some hint
about this person and his business, but I keep running into a dead end. As seen in the photo, the notes
clearly state they are from the State of Michigan. And the business was located on Main Street, as
printed on the bottom left center of each note. On the bottom right center is the name Jackson. There
was a town in Michigan called Jackson during obsolete days, so I'm assuming that Mr. Merriman
operated his business at a location on Main Street in Jackson, Michigan. Because there is no hint of a
date on the notes, I really don't have a time frame to go by. But the style of print does suggest to me
the notes were probably printed during the middle 1800s. Unlike most obsolete scrip notes, not only
are these high denomination, they are also full sized, as this sheet measures 11" x 17".
In closing, I am thoroughly intrigued by this sheet, and its lack of information. I've come to the
conclusion that the only hope I have of finding anything about it is if one of our members has come
across Mr. Merriman at sometime in the past. I would like to encourage anyone that may be able to
shed some light to contact me at robertgill@cableone.net. So, until next time, HAPPY
COLLECTING.
Paper Money * Nov/Dec 2014 * Whole No. 294
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439
Jonathan A. Bliss and the Gainesville
(Alabama) Insurance Company
by Bill Gunther
In today’s world, risk is something we rarely embrace. Fortunately for Alabama, the
story was very much different in the early years following statehood in 1819. Many early
migrants to Alabama left very comfortable lives in settled communities to face the inevitable
risks of a “frontier” life, believing or at least hoping that the risk‐reward tradeoff favored their
actions. Jonathan A. Bliss of Vermont made just such an assessment when he decided to invest
in the “New England Land Company”, a company which ultimately became associated with the
development of Gainesville, Alabama.
Jonathan A. Bliss came to Alabama in 1836 as a practicing
attorney and land speculator. However, in the mid‐1850s, he also
embarked on an additional career when he became the president of
the Gainesville (Alabama) Insurance Company. When and why he
ventured into the insurance business in Alabama is one of the more
interesting questions explored in this article. His motivations and
personal story, while like those of many other early settlers, takes us
through a number of interesting historical events including the
unrestrained land speculation of the 1830s, the rapid growth in the
sale of life insurance (especially insurance on slaves) in the 1850s, and
the difficult choices faced by Northerners living in the South at the
beginning of the Civil War. We begin with a look Jonathan’s family
background, his training in law and the circumstances surrounding his
decision to come to Alabama.
Who Was Jonathan Bliss?
Jonathan Bliss was born in 1799, the first of eight children born to Shuboel and Martha Bliss.
His parents were married in their home state of Massachusetts in 1798, but then moved to
Vermont just before Jonathan was born.1 Vermont had grown very rapidly following the end of
the French and Indian War (1764) and many individuals from Massachusetts sought more space
and lower land prices in Vermont. Jonathan’s younger sister Martha, who was born in 1811,
would be the only Bliss sibling who would follow Jonathan to Alabama.2
Jonathan’s early schooling must have occurred in Vermont, although there is no indication if
it was public or private education. We do know however that he began his legal training at
Northampton (Massachusetts) Law School in 1823 (the year of its founding). While at
Northampton, he “read law” guided by two graduates of Dartmouth.3 Not surprisingly,
Jonathan subsequently enrolled at Dartmouth College in Hanover, New Hampshire.
Jonathan’s decision to enroll at Dartmouth may have also been influenced by a very public
battle between the Board of Trustees of Dartmouth and the New Hampshire Legislature.
Following several years of instability in the administration at Dartmouth College, the New
Hampshire Legislature attempted to take over Dartmouth College, change its mission from a
private school to a public school, alter the composition of the Board of Trustees, and rename it
Fig. 1 ‐ Jonathan A. Bliss
(about 1870‐79) Source:
Rauner Library,
Dartmouth College
Paper Money * Nov/Dec 2014 * Whole No. 294
440
Dartmouth University. A lengthy legal battle ensued over the right of the state to take over a
private institution, a battle which eventually ended up in the United States Supreme Court.4
Dartmouth College was represented by Daniel Webster, one of the most respected lawyers
in the country at the time and a Dartmouth alum. When the case ended in 1819, the Supreme
Court reversed the actions of the State and returned Dartmouth College to its private status.
The opportunity to witness this high‐profile case with non‐other than Daniel Webster himself
representing the college, must have had an impact on Jonathan’s decision to pursue law as a
career and to attend Dartmouth College.
After receiving his degree in 1824, Jonathan was admitted to the New Hampshire Bar in
1828 and began to practice law in Plymouth, New Hampshire, a small town located only 50
miles to the east of Dartmouth. In 1832, he moved to Haverhill, about 35 miles to the
northwest, were he practiced law until 1836.5
Jonathan’s George Washington Connection
By November of 1831, Jonathan Bliss, certainly one of the “most eligible bachelors” in
Haverhill, decided to settle down and marry. His bride‐to‐be was Lucretia Ann Curt Leverett
who was from near‐by Windsor, Vermont.6 Windsor was only 19 miles from Haverhill and it
seems likely that during his time in Haverhill Bliss became acquainted with Lucretia.
Lucretia’s father, Captain William Leverett (1726‐1817), served with George Washington at
Valley Forge in 1778 and was probably a well‐known individual in the area.7 Other famous
Leverett family members included William’s grandfather, John N. Leverett, who was the
seventh president of Harvard College from 1708‐1724,8 and William’s great‐great grandfather,
another “John” Leverett, who was Governor of the Massachusetts Bay Colony from 1673‐1679.9
While Jonathan was obviously about to marry into a family with significant provenance, his
extended family was also deeply involved in the American Revolution. At least 148 Bliss’ from
Massachusetts alone, the Bliss family state of residence, served in the Revolutionary War. One
in particular, Captain Jonathan Bliss (1725‐1800), served on the ship USS Alfred which was
commanded by John Paul Jones.10 With such pedigrees between them, we are left to
speculate on who attended Jonathan and Lucretia’s wedding!
While living in New Hampshire, Jonathan and Lucretia had three children. Their first child,
Martha A., was born in 1832. Three years later twin girls (Mary E. and Elizabeth L.) were born,
but unfortunately they both died in infancy.11 In January of 1836, still suffering from the loss
of their twin daughters, Jonathan, Lucretia and Martha made the decision to move to
Alabama.12
Moses (Lewis) Leads the Way
About the time that Jonathan was embarking on his legal education at Dartmouth, the
largest migration in the history of the U.S. was occurring. These migrants came from Virginia,
the Carolinas and even the “hills of New England” to the Mississippi Territory and the “so‐called
Alabama country…”13 Some commentators, including this North Carolina planter writing in
1817, referred to the strength of the Alabama migration as the “Alabama Feaver (sic):”
“The Alabama Feaver rages here with great violence and has carried off vast numbers of
our Citizens. I am apprehensive, if it continues to spread as it has done, it will almost
depopulate the country. There is no question that the feaver is contagious…for as soon
Paper Money * Nov/Dec 2014 * Whole No. 294
441
as one neighbor visits another who has just returned from the Alabama he immediately
discovers the same symptoms which are exhibited by the person who has seen the
allureing (sic) Alabama. Some of our oldest and most wealthy men are offering their
possessions for sale and desirous of removing to this new country.”14
Among those who would succumb to the “Alabama Feaver” was Moses Lewis, a
merchant residing in Bridgewater, New Hampshire. Moses’ son, William M., together with
Jonathan Bliss and David and William Russell formed the “New England Land Company”.15
These young men were apparently friends, were from contiguous towns in New Hampshire and
were all born between 1796‐1802. Evidence suggests that Moses Lewis was also a partner in
the New England Land Company, perhaps even the primary force behind the partnership.
Moses Lewis is the first to show up in Alabama at least by April of 1824 when he began
to purchase land in Greene County, Alabama at public auction. Bureau of Land Management
records indicate that Moses purchased two tracts of 80 acres each in April and another three
tracts, again 80 acres each, in November of 1824.16 That’s a total of 400 acres within his first
year of residence! It may be more than a coincidence that there were at least five partners in
the New England Land Company and Moses purchased five different tracts, all of the same size!
All of these purchases were made at public auctions held in St. Stephens, the location of the
nearest Federal Land Office and less than 100 miles from Gainesville.
Moses Lewis continued to acquire more land in the following years with 476 acres in
1825, 157 acres in 1826 and 628 acres in 1830. In total, Moses purchased 1,661 acres, all in
Greene County, Alabama. That’s a lot of land, especially if you are NOT a “planter” and only
have 5 slaves! 17 The most compelling conclusion one can reach is that Moses Lewis continued
throughout this period in the land speculation business, most likely on behalf of all of the
partners in the New England Land Company.
While Moses was accumulating land in Greene County, he had his eyes on a piece of
land that was adjacent to Greene County but was still part of Choctaw Indian lands. Having a
keen eye for the best land, Moses Lewis was lusting after a piece of land that was located close
to the Tombigbee River. He knew that it would be an ideal location for a shipping port for all of
the cotton that was rapidly becoming the road to riches to many in Alabama.
The land Moses Lewis ultimately acquired involved a somewhat strange turn of events.
The owner of this land was a John Coleman who was married to a Choctaw Indian.18 In 1831
Coleman had agreed to sell a portion of his land, including the land that Moses desired, to
George Struthers Gaines. Gaines was a long‐standing friend of the Choctaw Indians having
served in the Choctaw trading house between 1805‐1818.19 Shortly after agreeing to sell the
land to Gaines, Coleman received a much better offer from Moses Lewis. When Gaines learned
that Coleman had a much better offer for the land, he graciously freed Coleman from his
obligation and allowed him to sell the land at the higher price. When Moses Lewis began to lay
out a portion of the land for a town, he recalled the role that Gaines had played in his ability to
acquire the land and named the town in his honor ‐ Gainesville.
While this scenario suggests it was Moses Lewis that founded Gainesville, one writer
bluntly claims that it was in fact the New England Land Company that founded Gainesville.
Since Moses was most likely a partner in the land company, the two interpretations are not
contradictory.20
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At the same time that Moses was laying out the streets for the town of Gainesville in
1832, the Choctaws ceded much of their land east of the Tombigbee River and suddenly Moses
found his land in “Sumter County, Alabama.”21
The Panic of 1837
As land speculation continued unabated, President Andrew Johnson became
increasingly concerned about speculation in public lands and the payment for these lands in
questionable local scrip and state bank notes. In July of 1836 his administration issued the now
famous “Specie Circular” which mandated that all purchases of public lands be paid for with
gold or silver, or paper money backed by gold or silver.22 Very quickly the value of local
“money” issued by banks, railroads, merchants and others, collapsed. Many land speculators
found themselves unable to obtain the required specie to pay their obligations and
consequently defaulted on their bank loans. Banks then began to fail as well. Cotton prices
dropped by almost 52 percent between January 1836 and March of 1838.23 These were indeed
“hard times.”
The decision by Bliss and at least two of his partners in the New England Land Company
(the Russell brothers) to relocate to Alabama in the early part of 1836 predated the Specie
Circular and as always, bubbles were difficult to spot before they broke. Yet they probably
perceived relatively low risks to their move since they were already significant owners of the
land that was becoming Gainesville!
At Home in Gainesville
When Jonathan Bliss first arrived in Gainesville in early 1836, he would have found a
town alive with energy. There was a
new hotel called the American Hotel
which was “a favorite gathering spot
for visitors and townspeople with its
gaming rooms and a dance floor
supported on wooden springs to add
bounce to the dancers’ steps during
the Virginia Reel and other popular
dances of the period.”24 It was,
according to some observers, the
most “pretentious building in
Gainesville” and included a bell tower
which rang three times daily to
announce meal time.25
With horses such a major part
of everyone’s life at that time, it was only
natural that horse racing quickly became an
important social event in Gainesville and a race track was built just northeast of town. The
“North Sumter (County) Course,” as it was known, was reportedly the best track in the
Southeast! With offerings of gaming, racing and dancing, it is no wonder that Gainesville
would become the state’s third largest city in 1838 behind Huntsville and Mobile.26
Fig 2 ‐ The American Hotel, Gainesville, Alabama
(James Sulzby, Historic Alabama Hotels and Resorts)
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In 1837 after settling in Gainesville, Jonathan and Lucretia welcomed a son to the family.
They named the boy William L., most likely named for Jonathan’s good friend and partner
William Lewis. Sadly in 1839 Lucretia died after giving birth to a daughter, Mary Elizabeth. Just
three years later in 1842, Jonathan’s son William died. Jonathan was now a single father of
two girls; an infant (Mary E.) and an eight year old (Martha).
Following the death of his first wife, Jonathan returned to the Northeast for his second
wife, Mary B. R. Kidder of Massachusetts and they married in September of 1844.27 She was
born in 1809 and was ten years his junior, and it is likely that the Bliss and Kidder families were
previously well acquainted. Following their wedding, Jonathan returned home to Gainesville
with his new bride. Again tragedy would visit Jonathan in Gainesville when Mary Kidder Bliss
died in 1857 at the age of 48. The marriage produced no children and Jonathan again found
himself widowed at age 58.
Two years after the death of his second wife, Jonathan once again returned to his New
England roots to find his third wife, Maria Louisa Kidder, a first cousin of his second wife.28
Maria Kidder was born in 1815, and was some sixteen years younger than Jonathan. Jonathan,
now age 60 and Maria, age 44 were married on September 30, 1859.29 When they returned to
Gainesville they would be faced with increasing tensions between the North and South that
would test their loyalties to Alabama and the South. Given Jonathan’s record with his first two
brides from the Northeast, it’s a mark of real courage that Maria agreed to not only marry
Jonathan, but to move to Alabama with him as well! This marriage did not produce any
children.
Economic Success for Bliss and Partners
We do not know what assets Bliss and partners had when they arrived in Alabama, nor
do we know what, if any, losses they incurred during the “hard times” that followed the Panic
of 1837. Yet in spite of whatever setbacks were encountered in the 1840’s and even in the
1850’s, the Census of 1860 reveals that Bliss and his partners in Alabama were all quite well‐off.
Jonathan Bliss was by far the wealthiest of the partners with real estate valued at $4,000 and a
personal estate valued at $175,000 in 1860. Others included David Russell (real estate $26,000
and personal estate of $108,400), William W. Russell, who had returned to New Hampshire by
1860 to become a merchant (real estate of $20,000 and personal estate of $40,000) and
William M. Lewis (real estate of $55,000 and personal estate of $60,000). To put these
amounts into context, the average annual farm wage in Alabama at the time was less than
$150. Overseers earned between $200‐$600 annually!30
So what occupations allowed these partners to earn such wealth? David Russell
apparently followed in Moses Lewis’ steps and was listed as a “land agent” in Gainesville in
1860. William Russell was single when he came Alabama and, apparently unhappy in these
surroundings, returned to New Hampshire around 1828 and became a merchant and farmer.31
William M. Lewis, Moses’ son, was a successful merchant in Gainesville where he remained
until he died in 1880 at age 81. The close ties between Jonathan and one of his partners, David
Russell, strengthened when Russell’s son married Bliss’ daughter, Mary E., in 1861.32 But what
do we know about the major source of Jonathan’s wealth?
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Jonathan Bliss and the Gainesville Insurance Company
There are probably two factors that led to Jonathan’s decision to enter the insurance
business in Alabama. The first was his familiarity with the rapid growth of insurance companies
that occurred in his home region. The states of Pennsylvania, Maryland, Massachusetts and
New York were the homes to the pioneers of life insurance at a time when Jonathan was first
entering the legal profession.33 It’s hard to believe that he was not aware of the rapid growth
of these companies and significant returns they offered early investors.
The second experience that probably influenced Jonathan to enter the insurance
business is the Gainesville fire that occurred on January 23 of 1855.34 That fire claimed some
30 buildings in Gainesville, with damages estimated at $162,680, with only $17,260 covered by
insurance. One of the buildings lost was Jonathan’s own office!
We do not know if Jonathan had insured his office or not, but the fact that so much of
Gainesville was not insured against fired must have made an impression on just about everyone
in Gainesville, including Bliss. Fire insurance would now sell itself in Gainesville and Bliss may
have seen an opportunity to be in the right place at the right time with an insurance company.
The idea was not a difficult one to sell to potential partners, for Jonathan began with six
partners, one of whom was a partner in the New England Land Company (William M. Lewis, son
of Moses Lewis). They received their corporate charter from the Alabama General Assembly on
January 22, 1856, one year and one day from the devastating fire.35
Capital for the Gainesville Insurance Company was to be a minimum of $50,000 and a
maximum of $200,000, raised through the subscription (sale) of shares of stock at $100 each.
Section 5 of the Act authorized the company to sell insurance on:
“houses, stables, gin houses, cotton, corn and other produce, upon lives and health
both of white persons and of slaves, upon stock of every description, upon vessels, boats,
freight, money, goods, wares and merchandise, and any other species of property against loss
in any manner…”.
Of particular interest here is the authorization to issue life insurance on slaves. Bliss
may have been aware that the “demand for policies on slaves was growing rapidly during the
1850s and paralleled the growth in policies on northeastern whites.”36 Bliss may have
understood the potential that this insurance product provided to him as a consequence of
Gainesville’s role as a prime shipping point for cotton. Slave owners would be regular visitors
to Gainesville and there would be plenty of opportunities to sell them insurance on the cotton
as well as on the slaves.
An equally promising business opportunity was provided to the Gainesville Insurance
Company in Section 6 of the Act which stated:
“That the said company shall be authorized to loan it’s moneys and funds from
whatever source derived, at interest, to invest the same in real or personal securities by
discounting and deal the same in the purchase and sale of domestic and foreign exchange.”
This section of the charter allowed them to make personal loans and to deal in foreign
exchange, the latter most likely British Pounds encountered from trading cotton. The
Gainesville Insurance Company charter was far more expansive than simply allowing the
company to sell insurance and in effect allowed the company to act as a “private bank” at a
time when banks in general were not held in high esteem!
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Additional benefits provided to the company in their charter are outlined in Section 8 of
the Act:
“Be it further enacted that the said company shall be authorized to receive in Trust, or
on deposit, all funds or moneys that may be offered to them whether on interest or otherwise
and that they have the power to give acknowledgment for deposits in such manner and form as
they may deem convenient and necessary to transact such business, all moneys so deposited
being free from loss on indebtedness growing out of the insurance business of said company.”
The Gainesville Insurance Company could receive deposits, issue “acknowledgements”
for those deposits and make loans. The Charter gave protection to the depositors from any
losses which might be incurred by the insurance side of the business.
While we don’t know how much money the Gainesville Insurance Company made from
their “banking” business, the value of Bliss’ estate in 1860 ($175,000) suggests it was
substantial. In his Application for Pardon, Bliss stated that his new worth was “unknown” since
it consisted largely of “moneys owed me”.37 One interpretation of that statement is that his
assets were largely personal loans, implicitly made through the Gainesville Insurance Company.
While there is no date on this “receipt” or “certificate of deposit”, it must have been
issued after the date of incorporation of January 22, 1856 and before the beginning of the Civil
War in 1861. There is no printer identified on the note, but the quality of engraving and style
of vignette suggests that it was a northern printer who had experience in the bank note
business.
The wording on this “note” could be also designed to allow a patron of the company
who had paid some amount on account and was due $1 in change to receive this “certificate.”
A general shortage of specie such as occurred during the time of the Panic of 1857 may have
made it impossible for merchants such as Bliss and others to provide specie as change and
these notes were created to mitigate that problem.38 If the merchant was reputable and in
good standing, as was probably the case with Jonathan Bliss, these notes could then freely
circulate in the community as a form of “money.” Because of the wording on these notes, they
would not come in conflict with any existing laws which prohibited the private issue of money.
Although this note is signed by Jonathan A. Bliss, it was not countersigned by the “Secrt.”
(see left bottom). This may indicate that the note is a “remainder”, a note that was printed but
never actually issued. Fully signed notes would have most likely been redeemed by their
owners.
Fig 3 ‐ an “acknowledgement for deposit”
authorized by Section 8. Gainesville
Insurance Company Certificate of Deposit
– No Date. Source: Courtesy Heritage
Auctions
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By the second year of the Civil War, specie again disappeared from circulation and
merchants found it difficult to make change. The
solution to that problem was very similar to the
one crafted following the Panic of 1837 and that
was to issue private scrip. The practice was
widespread with banks, merchants, railroads,
hotels, stables, and many others joining the fray.
The Gainesville Insurance Company having already
issued certificates which most likely had been
widely accepted, joined others in issuing these
change notes in 1862. What we note
immediately about this 1862 note when compared to the earlier note is that the design is very
plain and does not have a central vignette or a printer identification. The contrast between the
first note and this one suggests that this second note was probably printed in Alabama, perhaps
even in Gainesville by a printer with limited experience in bank note printing. The prohibition
against northern companies doing business with southern companies would have indeed make
it illegal to use a northern‐based printer.39
Two interesting facts about this note are that (1) it is not signed by Jonathan Bliss, and
(2) it is counter‐signed on the left vertical margin. Given that Jonathan Bliss spent many of his
summers back in New Hampshire, this note was most likely signed while he was out of state.40
The use of a counter‐signature was also designed to reduce fraud by requiring the authorization
of a second person. The person who counter‐signed these notes was Nelson T. Dimick, and he
must he have been someone trusted by Jonathan Bliss to control the issue of these notes in his
absence. Dimick, who listed his occupation as ‘Sec. Tres.” in the 1860 Census lived in the
American Hotel. He died in Gainesville in 1868 at the age of 34.
The 25 cent note is similar to the 10 cent note except for the denomination. While one
was reportedly sold at Heritage Auctions,
there was no image of the note. The 50 cent
note is again similar to the 10 cent and 25
cents notes, but is an unlisted denomination
in the Rosene book.
The $1 note (Figure 6) , $2 (Figure 7)
and $3 (Figure 8) notes are larger in size when
compared to the fractional issues but have
the added feature of a somewhat primative
sketch of a train with two carriages. The $1
note is again signed by someone other than
Jonathan Bliss, but the $2 and $3 are each signed by him. They are each counter‐signed by
Nelson T. Dimick.
Fig 4 – The Gainesville Insurance Company, 10 cents 1862.
Courtesy Heritage Auctions
Fig 5 – The Gainesville Insurance Company, 50 cents.
Courtesy of Heritage Auctions.
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These notes were not in circulation for very long because the State of Alabama declared
it illegal to issue these types of notes effective December 19, 1862, and illegal to use them in
commerce effective April 1, 1863.41 The penalties were sufficient to motivate Jonathan Bliss to
actually run ads in the local paper encouraging those holding his notes to bring them into his
office where he would redeem them for Confederate and/or State issued notes.42
The Civil War Creates Tough Choices
As tensions rose between the North and the South, Jonathan and other “Yankees” in
Alabama were faced with tough choices. While they had worked hard to carve out a new
home in their adopted South, many remained loyal to the states from which they came. This
emotional conflict is revealed in a biography of Jonathan Bliss that appeared in 1894 where the
author stated:
“When the madness of secession began to rage in the South, he [Bliss] had acquired
property of the value of a hundred thousand dollars. Knowing the peaceable but
determined temper of the North as he did, he strove with all his might to dissuade his
neighbors from rushing into armed rebellion, but all to no purpose. Soon he was
summoned to declare himself on one side or the other, and reluctantly decided that he
must cast his lot with the section where he dwelt. As an earnest of his sincerity he
raised a military company, and armed and equipped them at an expense of twenty
thousand dollars.”43
Fig 7 – The Gainesville Insurance
Company, $2, 1862 Courtesy Heritage
Auctions.
Fig 6 – The Gainesville Insurance
Company, $1, 1862 Courtesy Heritage
Auctions.
Fig 8 – The Gainesville Insurance
Company, $3, 1862 Courtesy Heritage
Auctions.
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448
After the war ended, Jonathan Bliss, along with thousands of others, accepted the opportunity
to petition the President for a Pardon under the Amnesty Act of 1865.44 The act of “general
amnesty” specifically “excluded” a total of 14 classes of individuals and required them, if they
wished to be pardoned, to directly petition the President for clemency. Included in those
excluded classes were those who “voluntarily supported” the rebellion and had assets of
$20,000 or more.
Some observers of the inclusion of “excluded classes” by President Johnson was
“intended that they should sue for pardon, and so realize the enormity of their crime”.45
Others have argued that the $20,000 exclusion was directed targeted to the wealthy class, a
position they say would be consistent with President Johnson populist leanings.46 Without a
pardon from the President, a person’s property was subject to confiscation. Jonathan Bliss was
apparently unwilling to expose himself and his family to this risk and thus he applied for
Amnesty on August 19, 1865. In that petition, he specifically addresses a number of the
“exclusions” and stated that he was not in the military, was not a planter (e.g., did not own
slaves except for a “few house servants”), did not serve in the government, and in fact had
opposed secession before it occurred. All of this was, one may suppose, to support an implicit
argument that he did not provide “voluntary” support for the rebellion. However, in a
biography mentioned earlier the author claimed that Jonathan Bliss “raised a military company
and armed and equipped them at an expense of twenty thousand dollars.”47 If this allegation
was in fact true, it would be difficult to conclude that he was not in fact a “voluntary” supporter
of the rebellion. However, Jonathan did not address this allegation and in fact it was not
revealed until this biography printed in 1894.
Bliss cleverly addressed some the “exclusions” in his
petition. With an estate valued at more than $175,000 and a
clear bias against the “rich” expressed by President Johnson,
Bliss did not directly state the value of his estate. Rather he
cleverly stated that “What property I have consists almost
entirely of monies due me and the question whether I am or
shall be worth the same named in the 13th exceptions will
depend very much upon what may be the future prosperity of
the South.”48 Bliss claimed, honestly one must agree, that it
was really impossible to know the value of his personal estate
in the months immediately following the end of Civil War.
But this statement does in fact support the theory that much
of Bliss’ wealth came from the banking side of the Gainesville
Insurance Company and from personal loans. Apparently the
arguments presented in his petition were convincing and
President Johnson signed his Amnesty papers on March 2,
1866.49
Page 1 of Jonathan Bliss’ Petition
for Amnesty, 1865
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In the End
After the end of the war, Jonathan Bliss and his wife Maria continued to live in
Gainesville. The Gainesville Insurance Company would have disappeared, if not already
bankrupted during the war. With his rights restored under the Amnesty Proclamation,
Jonathan returned to the practice of law.
Jonathan passed away while “on a journey” in Cleveland, Ohio on July 27, 1879, only
days after his 80th birthday.50 With more than 500 individuals in the Cleveland area with the
Bliss family name, this “journey” was most likely one to visit family.
It is interesting to note that while Jonathan died in Ohio and had made many return
visits to New Hampshire over the years, he apparently chose to be buried in Gainesville,
Alabama.
Maria Bliss remained in the Gainesville area following Jonathan’s death living with her
step‐daughter, Martha and her husband (John Warren).51 However, by 1900 she had returned
to the northeast to live with her younger brother in Massachusetts and the last of Jonathan
Bliss’ family left Alabama and returned to the northeast.52 Maria Bliss, Jonathan’s third wife
and the only one to outlive him, passed away in 1905 at age 89.
Footnotes
1John Homer Bliss, Genealogy of the Bliss Family in America, From about 1550‐1880, Boston, Massachusetts,
Privately Published, 1881). Accessed through Ancestry.com.
2Martha reported married John C. Whitsell in Gainesville in 1839. She most likely came to Alabama with Jonathan
in 1836. Bliss, Genealogy of Bliss Family.
3 See “Chapman’s Alumni Guide” “Sketches of Alumni of Dartmouth College,” accessed at www.dartmouth.edu.
4Francis Lane Childs, “A Dartmouth History Lesson for Freshmen,” Dartmouth Alumni Magazine, December 1957,
accessed at www.dartmouth.org.
5Charles Henry Bell, The Bench and Bar of New Hampshire (Boston and New York: The Houghlin Mifflin and
Company, 1894), p. 212. Accessed at Google Books.
6John Elliott Bowman, “Some Vermont Vital Records of the Early 19th Century,” p.7, accessed through
Ancestry.com.
7 “Officers Who Took Oath of Allegiance at Valley Forge, 1778,” Accessed at Colonial
Ancesters.com/revolutionary/oath1.htm.
8www.harvard.edu/history‐presidency.
9www.mass.gov.
10“Who Lies Here? Zeba Franklin Bliss, Humble Civil War Veteran,” Taunton Daily Gazette
(www.tauntongazette.com), posted August 5, 2013.
11 Bliss, Genealogy of Bliss Family.
12Inscription on memorial states Jonathan Bliss “Came to Alabama Jan. 8, 1836.” See Findagrave at
http://www.findagrave.com/cgi‐
13Malcolm Rohrbough, The Land Office Business: The Settlement and Administration of American Public Lands,
1789‐1837 (New York: Oxford University Press, 1968), p. 89
14Rohrbough, 91.
15George Frederick Mellen, “Joseph G. Baldwin and the “Flush Times,” The Swanee Review, Vol. 9, No. 2 (April
1901), p. 176. Accessed at www.jstor.org.
16U.S. Department of the Interior, Bureau of Land Management, General Land Office Records.
www.glorecords.blm.gov.
17Federal Census of Slaves, 1860. Accessed at Ancestry.com.
18Thomas McAdory Owen, History of Alabama and Dictionary of Alabama Biography (Chicago: S. J. Clarkf Publishing
Company, 1921), p. 643 (Vol 1 ) Reprinted by Bibliolife.
19For more information about the colorful George Gaines see James P. Pate, The Reminiscences of George Strother
Gaines (Tuscaloosa: The University of Alabama Press, 1998).
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20George Frederick Mellen, “Joseph G. Baldwin and the “Flush Times”.
21http://www.archives.state.al.us/counties/sumter.html
22Richard J. Behn, “Andrew Jackson, Banks and the Panic of 1837,” The Lehrman Institute, pp.25‐26.
(www.lehrmaninstitute.org/history/Andrew‐Jackson‐1837.asp)
23John J. Wallis, “What Caused the Crisis of 1839?”, National Bureau of Economic Research Historical Paper 133,
pp. 35‐36. (www.econweb. umd.eud)
24Leslie Tate, “Woodbury (1816‐1838): The First Morgan Horse in Alabama,” www.cvfarm.com.
25James F. Sulzby, Jr. Historic Alabama Hotels and Resorts (Tuscaloosa: The University of Alabama Press, 1960), pp.
14‐15.
26Tate, “Woodbury (1816‐1838)”.
27 “Medford Marriage,” Massachusetts Town and Vital Records, 1620‐1988, p. 252. Accessed through
Ancestry.com.
28 “A Genealogy of the Kidder Family,” Accessed at Ancestry.com.
29 “Medford Marriage,” Massachusetts Town and Vital Records.
30Stanley Lebergott, “Wage Trends, 1800‐1900,” in Trends in the American Economy in the 19th Century (Princeton:
Princeton University Press, 1960), p. 453. Accessed at http:www.nber.org/chapters/c2846.) and Lucille Griffith,
Alabama: A Documentary History (Tuscaloosa: University of Alabama Press) Revised Edition, 1972, p.145.
31Federal Census records of 1850 show that William Russell was living in Plymouth, New Hampshire and that his
wife was born in New Hampshire and that his oldest child listed was born in 1828 in New Hampshire. That would
mean that William Russell left Alabama no later than 1828.
32See Public Member Trees for David Moor Russell, Ancestry.com. Son had same name as father and married Mary
Elizabeth Bliss, May 1, 1861. At some point they relocated to Mississippi
33Sharon Ann Murphy, Investing in Life: Insurance in Antebellum America (Baltimore: The Johns Hopkins University
Press, 2010), p.4.
34See History of Sumter County, Alabama, Heritage Publishing Consultants, (Clanton, Alabama, 2005). p.142.
35Act 294, “An Act to Incorporate the Gainesville Insurance Company,” Acts of the General Assembly of Alabama,
January 22, 1856. Alabama Department of Archives and History, Montgomery, Alabama.
36Murphy, p.184.
37See Confederate Applications for Presidential Pardons, National Archives Microfilm Publications. Accessed
through Ancestry.com.
38See Charles W. Calomiris and Larry Schweikart, “The Panic of 1857: Origins, Transmission, and Containment,” The
Journal of Economic History, Vol. 51, No. 4 (December 1991), pp. 807‐834. Available at
www.academiccommonscolumbia.edu.
39President Abraham Lincoln signed the “Non‐Intercourse Act” Aug 26, 1861, which made it illegal to do business
between northern and southern companies
40 This was a statement made by Jonathan Bliss in his Application for a Pardon. See Confederate Applications for
Presidential Pardons.
41Act 34, “To Prevent the Circulation of Change Bills”, Acts of the Called Session, 1862, General Assembly of
Alabama , Alabama Department of Archives and History, Montgomery, Alabama.
42The Independent, Gainesville, Alabama, December 20, 1862, Department of Archives and History, State of
Alabama.
43Charles Henry Bell, The Bench and Bar of New Hampshire.
44“Andrew Johnson: Proclamation of Amnesty and Pardon for the Confederate States,” in Encyclopedia Britannica’s
Guide to American Presidents, www.britannica.com.
45“Introduction” to Confederate Applications for Presidential Pardons, National Archives Microfilm Publications, p.
2. Accessed by Ancestry.com
46“Andrew Johnson: Proclamation of Amnesty and Pardon for the Confederate States,” www.britannica.com.
47Charles Henry Bell, The Bench and Bar of New Hampshire.
48Jonathan A. Bliss, “Confederate Applications for Presidential Pardons,” p.3.
49 “U.S. Pardons under Amnesty Proclamations, 1865‐1869”, accessed through Ancestry.com.
50“A Genealogy of the Kidder Family,” Accessed at Ancestry.com.
51Federal Census of 1880. Accessed at Ancestry.com.
52Federal Census of 1900. Accessed at Ancestry.com
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Chump
Change
Loren Gatch
Of Butterflies and Banknotes
A few issues ago I published a short piece on
“Thoreau Money”, a kind of anti-war scrip promoting
tax resistance during the 1960s. I had fun researching
and writing up the story, and was gratified by good
reader feedback. While doing the work I came upon a
similar example of countercultural ephemera, the
“Digger Dollar”, put out by a Haight-Ashbury
anarchist group, the Diggers, that was active during the
same years. Among other things, the Diggers
promoted the concept of “Free” –free food, clothing,
shelter—as part of their challenge to the dominant
values of a capitalist society. While long defunct, the
Diggers’ former members have maintained a website
to document that era.
It was there that I
encountered a plaintive
rant against the
commercialization of
Digger artifacts, in
particular against the idea that a Digger
Dollar would actually sell for actual dollars:
[A] copy of a Digger Dollar came up for sale on a
dealer's site…It came as a shock to me when I found
someone selling Digger items online. The Digger
philosophy was always Free…when a Digger Dollar
gets sold for $300, that gets my attention… Let's hope
that the demand for these materials slackens. And hope
that this site isn't helping propel the paradox of collector
demand which is anathema to archivists everywhere.
I found that last line particularly striking, since it
blamed collectors—who by their nature seek to
preserve what they collect—for creating the economic
pressures that make more difficult the preservation of
the past.
I’ve encountered this attitude elsewhere. Back in
June of this year, an online discussion thread about
local currencies addressed the influence of collectors
on local currency initiatives, in particular on Kenya’s
Bangla-Pesa, an exchange medium used in the slums of
Mombasa:
As far as currency collectors go - I find them to be
generally a nuisance. They remove money from
circulation and also give people the idea that the local
currency should be hoarded in case they can find more
collectors.
Ouch! As both a supporter and a collector of local
currencies, this slap hurt. All the same, I take the
complaint seriously: Is there something about the very
notion of collecting—collecting anything—that
undermines the value or even the meaning of the thing
collected?
To collect anything takes it out of its original
world and places it in a new one. The literary critic
Walter Benjamin once described collecting as a
“relationship to objects which does not emphasize
their functional, utilitarian value—that is, their
usefulness—but studies and loves them as the scene,
the stage, of their fate.” Benjamin’s love was for
books, but this logic applies to almost anything a
collector might fancy. The collector of dolls doesn’t
play with them; the philatelist doesn’t send letters with
her collection; and a rock hound preserves his
geological treasures from the erosion of the elements.
If anything, this disconnect between the
functions of money and its collectability is even more
complete. Coins and bills are meant to circulate until
they are worn, tattered or simply lost. Plucking money
from the swirl of commerce and mounting it in a
mylar holder is like a lepidopterist skewering a
Monarch with his pin of permanent immobility: it looks
like a butterfly, but no longer is one in the sense of
fulfilling its nature to float along with the vagaries of
the wind.
As a kid, what drew me into coin collecting
wasn’t the luster of uncirculated pieces, but the
grubbiness of the worn ones. A smooth Barber quarter
or a dateless Buffalo nickel was an utterly exotic,
almost shocking discovery for me. Their very
effacement forced the question, how many and whose
hands did you go through to get like that; what
experiences scoured you so? Alas, the coins remained
mute and their secrets undivulged, but it was that very
mystery that first stoked my passion for collecting.
When collectors grow up they give themselves
fancy names (numismatists, notaphilists), and the
aesthetics of their hobbies are the reverse of
childhood. It’s precisely the flawless specimens that
command the most esteem (and highest price)—all
precisely graded and slabbed, carefully protected from
the grubby touch of that original child’s curious hands.
The collector’s goal is to acquire, for that is his
obsession to do. But, as Benjamin continued, mere
acquisition is only the beginning: “the period, the
region, the craftsmanship, the former ownership—for
a true collector the whole background of an item adds
up to a magic encyclopedia whose quintessence is the
fate of this object.”
I probably never will own a Digger Dollar (I’d
feel too guilty at this point!), but if collecting is really
just a pretext for curiosity, then its story remains yet
another mystery to research and explore. And I look
forward to it.
Paper Money * Nov/Dec 2014 * Whole No. 294
452
President’s Column
Nov/Dec 2014
I write this at the approach of peak leaf
season here in New England on a beautiful sunny
day with the leaves approaching full color! Fall
comes early here compared to Atlanta, GA where I
used to reside until 2011 and also marks a break
between major coin and paper money shows. I
wrote about the major summer ANA show in my
last column where we had a significant Society of
Paper Money Collectors presence – booth,
meeting, dealers, and collectors - a great show. If
you cannot make Memphis, the next two favorite
shows for me are the winter Florida United
Numismatists (FUN) show and the summer
American Numismatic Association (ANA) show
where a significant presence of paper money and
SPMC people can congregate.
Shows I’ve attended since ANA have been
the Blue Ridge Show in Dalton GA, Long Beach,
CA, and a local show in Westford MA. Blue
Ridge has a long tradition of a good number of
paper money collectors and dealers present. We
did not do a Society meeting this year due to
scheduling challenges for rooms at the convention
center, but will look into it for next year. ANA
President Walt Ostromecki attended this year’s
Blue Ridge meeting with collectors and dealers of
the ANA, SPMC and others. This was a well-
attended and fun show. Long Beach, CA was a
first for me in many years. It is the largest show
on the west coast, similar to what Baltimore is for
the east. Despite it mainly being considered a coin
show, it actually has quite a variety of hobby
collectibles including a large contingent of paper
money dealers, some of whom we do not regularly
see in the east. The next Long Beach is in January
– a great time to be in southern California catching
up with fellow paper money aficionados! Local
shows are also fun and can be well attended by
people you may get to know on a regular basis and
see at local coin and paper money clubs. I attend
the Westford MA show, but there are many like
this around the country. If you have not attended a
show before, try one of these before venturing
further. You will find any of these shows
interesting and the opportunity to see people
directly, converse, share items of interest is
precious!
The SPMC obsolete database project led by
Vice President Shawn Hewitt is coming along.
This is a proposal for an online database of U.S.
Obsolete Notes in a manner similar to the web
portal Wikipedia, where anyone can contribute to
the pool of information, and experts in their
respective fields can correct and maintain the
integrity of the data. There is a twofold scope to
the project: 1) to catalog all known obsolete notes,
and 2) to keep a census of all known notes. A
beginning phase of the project is likely to be
focused on a catalog and a census, where every
known note can be recorded with the assistance of
contributors. This project may also be scalable to
other types of notes as well, e.g. CSA. This is an
exciting project that fits squarely within the
mission of the SPMC – education. I look forward
to seeing the test runs of this in the relatively near
future.
Many of us enjoy the local/regional SPMC
meetings. We need people who regularly attend
shows to help with these going forward. In
particular are FUN, GNA, ANA and Blue Ridge
where in addition to Memphis we have historically
held SPMC meetings. Other locales and shows are
welcome to be added. This is an easy role to
contribute to the Society and hobby at large with.
You would take ownership of one meeting in one
locale, once a year. You only need to contact the
show chairperson, arrange a room (we pay for it if
needed), beverages and or snacks, and arrange for
a speaker. These are fun and educational meetings
and many of us want to see this continue.
Happy Hunting on the Paper Trails of
Numismatics!
Pierre Fricke
Paper Money * Nov/Dec 2014 * Whole No. 294
453
W_l]om_ to Our N_w
M_m\_rs!
\y Fr[nk Cl[rk—M_m\_rship Dir_]tor
SPMC NEW MEMBERS SPMC NEW MEMBERS
09/05/2014 - 14291 – 14303 10/05/2014 - 14304 - 14309
14291 David Jones, (C & D),US Small and
Special Serial Numbers, Scott Lindquist
14292 David Schwager,(C), Frank Clark
14293 Takafumi Akimoto,(C), Website
14294 Melissa Gumm, (C), Website
14295 Clay Learned, (C), Website
14296 Bernie Caviness, (C), Website
14297 Nicholas Gessler, (C & D), David Bowers
14298 Gerard DeFoe,(C), Website
14299 Kevin Cavanaugh, (C), Black Book Price
Guide to US Paper Money
14300 David Suddarth, C), Website
14301 Harry Cohen, (C), Mark Anderson
14302 Rick Ewing, (C), Frank Clark
14303 Anthony T. Bucci, (C), Wendell Wolka
REINSTATEMENTS
None
LIFE MEMBERSHIPS
None
14304 Josh Kelley, (C), Website
14305 Ken Chylinski, (C & D), Frank Clark
14306 Robert Boesel, (C), Jason Bradford
14307 Robin Kontra, (C), Jason Bradford
14309 Glenn J. Ackerman, Jr, (C), Frank Clark
REINSTATEMENTS
None
LIFE MEMBERSHIPS
None
For Membership questions,
dues and contact information
go to our website
www.spmc.org
Paper Money * Nov/Dec 2014 * Whole No. 294
454
Editor Sez
Happy Holidays and Reflections on the
first five issues!
Hello and Happy Holidays! I
hope you all have a great holiday
season, no matter what your celebratory
type is. This is really a cool time of year
and one that I enjoy immensely, not in the
least of which is all the wonderful food I get
to eat. This edition of Paper Money is our
gift to you—full of color and very informa-
tive articles. It was neat seeing the lead
article from Mark and Len come together. I
hope some of you were able to see Len’s
exhibit of his currency Christmas cards at
Memphis a few years back. The ones pic-
ture in the article are great, but knowing he
has a LOT more is staggering.
A big congratulations to Claud and
Judith Murphy. At the recent North Caroli-
na Numismatic Association convent ion,
they were awarded the Ted Hendrick
award. The award was inscribed “For
serving the numismatic community with
integrity, courtesy and unbounded enthu-
siasm.” Mr. Hendricks and the Murphy’s
served together on the committee selected
by the governor to help choose the design
for the North Carolina State quarter.
Another item for paper money afi-
cionados is that one of the first, if not the
first collections of hometown currency can
now be viewed entirely on-line. William
Youngerman invites all paper money en-
thusiasts to view it at
www.hometowncurrency.org.
He states that a brick and mortar
museum was considered, but in this age of
virtual reality, people are less likely to travel
to a museum when they can access it on-
line. “Numismatics has always been very
dear to us over the past 50 years of being
in business. Collecting has always been a
passion with me and it is my hope that the
museum will encourage others to get involved
in this great hobby of ours. Simply speaking, it
is one of the ways I feel I can give back to a
hobby & business that has been good to us.”
The completeness of the Florida collec-
tion was made possible last November with
the acquisition of the famous Senator Warren
Henderson/Barnett Bank collection of Florida
Currency.
Youngerman encourages all to view
the site & submit any items not shown for
possible inclusion & to make regular revisits to
the site as new items are added daily.
This is the fifth issue of Paper Money
that I have done as the primary editor. It has
been a very rewarding but much more chal-
lenging position than I could have imagined. I
have served as newsletter editor for the frac-
tional currency club and the Texas Numis-
matic Association, so I thought I had a handle
on this job. WRONG! What a difference.
Putting out an 80 page high quality magazine
with outstanding researchers and authors is
quite different than my little operations where
I did it at home and had it copied at the local
Kinko’s type store.
Not to be a whiner, but to just let you
know that I have been learning along the way
and have made a lot of mistakes, none of
which I hope have affected you. I have
learned a lot of new words (some that I can-
not repeat here). I had to learn a new com-
puter program to put articles and ads in an
acceptable PDF format (not any old PDF for-
mat will do). Also, what is the deal with spell
check? Were you aware that sometime coin
dealers became con dealers in spell check?
OOOps. Don’t make that error too often! And
finally, I have had a lot of people submit arti-
cles which I appreciate. I promise that I will
get them published, but it is taking more time
than I anticipated to get them all formatted so
please bear with me and keep them coming!
Benny
Texting and Driving—It can wait!
Paper Money * Nov/Dec 2014 * Whole No. 294
455
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checking copies. 10 discount for four or more insertions of the same copy.
Authors are also offered a free three-line classified ad in recognition of
their contribution to the Society. These ads are denoted by (A) and are run
on a space available basis. Special: Three line ad for six issues ‘ only
$20.50!
Stamford CT Nationals For Sale or Trade. Have some duplicate notes,
prefer trade for other Stamford notes, wil l consider cash.
dombongo@earthlink.net (293)
WANTED: 1778 NORTH CAROLINA COLONIAL $40. (Free Speech
Motto). Kenneth Casebeer, (828) 277-1779; Casebeer@law.miami.edu
WORLD PAPER MONEY. 2 stamps for new arrival price list. I actively buy
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Box 1932, Canyon Country, CA 91386 www.garysnover.com. (288)
"Collecting Paper Money with Confidence"
All 27 grading factors expained clearly and in detail.
Now available at Amazon.com AhlKayn@gmail.com (294)
Authors can request a free one-time ad. Contact the Editor (A)
WANTED: Notes from the State Bank of Indiana, Bank of the State of
Indiana, and related documents, reports, and other items. Write with
description (include photocopy if possible) first. Wendell Wolka, PO Box
1211, Greenwood, IN 46142 (294)
vermont National Bank Notes for sale. For l ist contact.
granitecutter@bellsouth.net (294)
WANTED: Any type Nationals from Charter #10444 Forestville, NY.
Contact with price. Leo Duliba, 469 Willard St., Jamestown, NY 14701-
4129.t (295)
FREQUENT PAPER MONEY AUTHOR (Joaquin Gil del Real) Needs a
copy of the Mar/Apr 1997 issue of the SPMC journal to complete his col-
lection. Contact me if you can assist in this matter. (A)
TRADE MY DUPLICATE, circulated FRN $1 star notes for yours I need.
Have many in the low printings. Free list. Ken Kooistra, PO Box 71,
Perkiomenville, PA 18074. kmk050652@verizon.net (288)
BUYINg ONLY $1 HAWAII OvERPRINTS. White, no stains, ink, rust or
rubber stamping, only EF or AU. Pay Ask. Craig Watanabe. 808-531-
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Paper Money * Nov/Dec 2014 * Whole No. 294
456
United States Paper Money
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Individual Rarities: Large, Small National
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Large Size Type
Error Notes
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Star or Replacement Notes
Specimens, Proofs, Experimentals
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For the past 13 years we have offered a
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NATIONAL BANK NOTES
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2290 NW Boca Raton Blvd. Suite 9
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Mail: PO Box 294049, Boca Raton, FL 33429
VISIT OUR NEW WEB SITE
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We buy and sell many different and unusual
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We do not buy or sell third party graded Currency.
For more information call Ed Kuszmar – 561‐392‐8551
Fractional Currency Collectors
Join the Fractional Currency Collectors Board (FCCB)
today and join with other collectors who study, collect
and commiserate about these fascinating notes.
New members get a copy of Milt Friedberg’s updated
version of the Encyclopedia of United States Postage
and Fractional Currency as well as a copy of the
Simplified copy of the same which is aimed at new
collectors. New members will also get a copy of Rob
Kravitz’s 1st edition “A Collector’s Guide to Postage
and Fractional Currency” while supplies last.
New Membership is $30
or $22 for the Simplified edition only
To join, contact William Brandimore, membership
chairman at 1009 Nina, Wausau, WI 54403.
Paper Money * Nov/Dec 2014 * Whole No. 294
457
Florida Paper Money
Ron Benice
“I collect all kinds
of Florida paper money”
4452 Deer Trail Blvd.
Sarasota, FL 34238
941 927 8765
Benice@Prodigy.net
Books available mcfarlandpub.com, amazon.com,
floridamint.com, barnesandnoble.com
Paper Money • March/April 2014 • Whole No. 290 158
MYLAR D® CURRENCY HOLDERS
PRICED AS FOLLOWS
BANK NOTE AND CHECK HOLDERS
SIZE INCHES 50 100 500 1000
Fractional 4-3/4" x 2-1/4" $21.60 $38.70 $171.00 $302.00
Colonial 5-1/2" x 3-1/16" $22.60 $41.00 $190.00 $342.00
Small Currency 6-5/8" x 2-7/8" $22.75 $42.50 $190.00 $360.00
Large Currency 7-7/8" x 3-1/2" $26.75 $48.00 $226.00 $410.00
Auction 9 x 3-3/4" $26.75 $48.00 $226.00 $410.00
Foreign Currency 8 x 5 $32.00 $58.00 $265.00 $465.00
Checks 9-5/8 x 4-1/4" $32.00 $58.00 $265.00 $465.00
SHEET HOLDERS
SIZE INCHES 10 50 100 250
Obsolete Sheet
End Open 8-3/4" x 14-1/2" $20.00 $88.00 $154.00 $358.00
National Sheet
Side Open 8-1/2" x 17-1/2" $21.00 $93.00 $165.00 $380.00
Stock Certificate
End Open 9-1/2" x 12-1/2" $19.00 $83.00 $150.00 $345.00
Map & Bond Size
End Open 18" x 24" $82.00 $365.00 $665.00 $1530.00
You may assort note holders for best price (min. 50 pcs. one size). You may
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SHIPPING IN THE U.S. (PARCEL POST) FREE OF CHARGE
Mylar D® is a Registered Trademark of the Dupont Corporation. This also
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DENLY’S OF BOSTON
P.O. Box 51010, Boston, MA 02205 • 617-482-8477
ORDERS ONLY: 800-HI-DENLY • FAX 617-357-8163
See Paper Money for Collectors
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HIGGINS MUSEUM
1507 Sanborn Ave. • Box 258
Okoboji, IA 51355
(712) 332-5859
www.TheHigginsMuseum.org
email: ladams@opencominc.com
Open: Tuesday-Sunday 11 to 5:30
Open from Memorial Day thru Labor Day
History of National Banking & Bank Notes
Turn of the Century Iowa Postcards
Paper Money * Nov/Dec 2014 * Whole No. 294
458
OUR MEMBERS SPECIALIZE IN
NATIONAL CURRENCY
They also specialize in Large Size Type Notes, Small Size Currency,
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and numerous other areas.
THE PROFESSIONAL CURRENCY DEALERS ASSOCIATION
is the leading organization of OVER 100 DEALERS in Currency,
Stocks and Bonds, Fiscal Documents and related paper items.
PCDA
• Hosts the annual National and World Paper Money Convention each fall in St. Louis, Missouri.
Please visit our Web Site pcdaonline.com for dates and location.
• Encourages public awareness and education regarding the hobby of Paper Money Collecting.
• Sponsors the John Hickman National Currency Exhibit Award each June at the Memphis Paper
Money Convention, as well as Paper Money classes at the A.N.A.’s Summer Seminar series.
• Publishes several “How to Collect” booklets regarding currency and related paper items. Availability
of these booklets can be found in the Membership Directory or on our Web Site.
• Is a proud supporter of the Society of Paper Money Collectors.
To be assured of knowledgeable, professional, and ethical dealings
when buying or selling currency, look for dealers who
proudly display the PCDA emblem.
The Professional Currency Dealers Association
For a FREE copy of the PCDA Membership Directory listing names, addresses and specialties
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